Single & Married Filing Jointly

Filing status is one of the most fundamental concepts in individual taxation. Your filing status determines your standard deduction amount, the tax bracket thresholds that apply to your income, and your eligibility for various credits and deductions. Choosing the correct filing status is often the first decision a tax preparer must make.

The December 31 Rule

Your marital status on the last day of the tax year determines your filing status for the entire year. This is called the "December 31 rule" and it applies regardless of what happened during the other 364 days of the year.

If you were married on December 31, you are considered married for the entire tax year. If you were unmarried on December 31, you are considered unmarried for the entire tax year.

Practical implications:

• A couple married on December 31 can file Married Filing Jointly for the entire year
• A couple divorced on December 31 must file as unmarried (Single or Head of Household if they qualify)
• The length of the marriage during the year does not matter

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Single Filing Status

Who Qualifies as Single?

You may file as Single if on December 31 you were:

1. Unmarried (never married, divorced, or widowed), OR
2. Legally separated under a divorce or separate maintenance decree issued by a court

Important distinction: Simply living apart from your spouse does NOT make you Single for tax purposes. You must have a court-issued divorce or legal separation decree. An informal separation, even if you lived in different states all year, still means you are married for tax purposes.

2024 Standard Deduction for Single Filers

2024 Tax Brackets for Single Filers

Example calculation: A single filer with $60,000 in taxable income pays:

• 10% on the first $11,600 = $1,160
• 12% on the next $35,550 ($11,601 to $47,150) = $4,266
• 22% on the remaining $12,850 ($47,151 to $60,000) = $2,827
• Total tax: $8,253 (effective rate of 13.76%)

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Married Filing Jointly (MFJ)

Who Qualifies for MFJ?

You may file Married Filing Jointly if on December 31 you were:

1. Married and living together, OR
2. Married and living apart (but not legally separated by court decree), OR
3. Married at the time of your spouse's death during the year (and you did not remarry)

Both spouses must agree to file jointly. If one spouse wants to file separately, the other spouse cannot force a joint filing.

The Marriage Requirement

For federal tax purposes, you are considered married if:

• You are legally married under state law where the marriage was performed
• You are in a common law marriage recognized by the state where the marriage began
• You are legally married under the laws of a foreign country

Same-sex marriages: Since Revenue Ruling 2013-17 (following the Supreme Court's Windsor decision) and Obergefell v. Hodges (2015), the IRS recognizes all legal same-sex marriages for federal tax purposes. This applies regardless of where the couple currently lives, as long as the marriage was valid where it was performed.

2024 Standard Deduction for MFJ

2024 Tax Brackets for Married Filing Jointly

Notice that the MFJ brackets are exactly double the Single brackets through the 32% bracket. This eliminates the "marriage penalty" for couples with similar incomes in these brackets.

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Joint and Several Liability

Critical concept for the EA exam: When you file a joint return, both spouses become jointly and severally liable for the entire tax liability.

What Joint and Several Liability Means

• Each spouse is responsible for 100% of the tax, penalties, and interest on the joint return
• The IRS can collect the entire amount from either spouse
• This liability continues even after divorce
• A divorce decree stating one spouse will pay the taxes does NOT release the other spouse from IRS collection

Example: John and Mary file jointly and owe $20,000 in taxes. They divorce, and the divorce decree says John will pay all the taxes. John does not pay. The IRS can:

• Collect the full $20,000 from Mary
• Garnish Mary's wages
• Levy Mary's bank accounts
• File a lien against Mary's property

Mary's only recourse is to sue John in civil court for violating the divorce decree. The IRS does not have to wait.

Innocent Spouse Relief

In some cases, a spouse may be relieved of joint and several liability through Innocent Spouse Relief (Form 8857). Three types of relief exist:

1. Innocent Spouse Relief - For erroneous items attributable to the other spouse that you did not know about
2. Separation of Liability Relief - Divides the understated tax between former spouses
3. Equitable Relief - For situations where it would be unfair to hold you liable

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Why MFJ Is Usually Advantageous

Married Filing Jointly provides several benefits compared to Married Filing Separately:

General rule: In almost all cases, MFJ results in lower total tax than MFS. Calculate both options to determine the best choice.

When Single Might Be "Better" (Comparison)

This question is somewhat theoretical since a person's marital status is a legal fact, not a choice. However, comparing the brackets:

• Single filers have higher bracket thresholds than MFS filers
• Single standard deduction ($14,600) equals MFS standard deduction ($14,600)
• But Single filers cannot access the benefits of MFJ

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Special Situations

Death of Spouse During the Year

If your spouse dies during the tax year and you do not remarry before December 31:

• You can file Married Filing Jointly for that year
• The joint return covers the deceased spouse's income for the period before death
• The surviving spouse signs the return and writes "Filing as surviving spouse" in the signature area
• For the two years following the year of death, you may qualify for Qualifying Surviving Spouse status (covered in section 2.4)

If you remarry before December 31 of the year your spouse died:

• You file MFJ with your new spouse
• The deceased spouse's final return is filed as Married Filing Separately

Annulled Marriages

If you obtain a court decree of annulment, which holds that no valid marriage ever existed:

• You are considered unmarried for that year and all prior years
• You must file amended returns (Form 1040-X) for all open tax years
• On amended returns, you file as Single or Head of Household (if you qualify)
• The statute of limitations for amended returns is generally 3 years from the original filing date

Common Law Marriages

The IRS recognizes common law marriages if they are valid under state law. Key points:

• Only some states recognize common law marriages (varies by state)
• If you entered a valid common law marriage in a state that recognizes it, you are married for federal tax purposes
• This remains true even if you move to a state that does NOT recognize common law marriages
• You may file MFJ or MFS like any other married couple

For the EA exam: Know that the IRS follows state law for determining whether a common law marriage exists.

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Exam Tips

1. December 31 is everything - Marital status on the last day of the year controls the entire year
2. Legal separation requires a court decree - Living apart is NOT the same as legally separated
3. Joint and several liability is absolute - Both spouses are 100% liable, period
4. MFJ is almost always better - Know the specific benefits denied to MFS filers
5. Annulment is retroactive - It undoes the marriage for all prior years
6. Common law follows state law - If the state says you're married, the IRS agrees