My wife runs a childcare business under an LLC. In 2024, she received a state grant but hasn’t finished paying her estimated taxes for the year. I work for a private company, and my taxes are automatically deducted. Will filing together increase my tax bill? Thanks for your advice.
Most tax software or your accountant can check both filing options (jointly or separately) to see what works better. If you’re doing this yourself, ignore the “refund tracker” on the software—it’s not helpful until you’ve entered all your details. Trust me, no one wants to see another post here asking why their refund dropped after entering more info.
Beck said:
@Ren
I’ll give TurboTax a shot without using the tracker. Thanks for the tip.
Forget TurboTax—they’re awful. Try FreeTaxUSA instead.
Shay said:
@Ren
Looks like you’re gearing up for tax season already.
Got to stay prepared. Oh, and happy cake day!
Shay said:
@Ren
Looks like you’re gearing up for tax season already.
Got to stay prepared. Oh, and happy cake day!
Thanks a lot!
It’s almost always better to file jointly. Here are the main reasons couples file separately:
- If one partner won’t cooperate, like during a separation or divorce.
- If filing separately benefits you in another way, like reducing income-based student loan payments.
In rare cases, filing separately can shield you from a spouse’s tax issues, but that’s usually only helpful if divorce is on the table.
An LLC is a legal structure but doesn’t change tax deadlines. The last estimated tax payment for 2024 isn’t due until January. Ask the accountant who handles her taxes—they can help with both of your filings.
The main reason to file separately is if one or both of you have income-driven student loan repayment plans.
Are you in a community property state?
When should married couples file separately?
- When they’re divorcing and don’t trust each other with accurate information.
- When one spouse has big medical bills or other deductions that make filing separately more beneficial.
- When filing separately helps them qualify for something else, like lower student loan payments.
In your case, filing jointly will probably save you money overall. Even if you’re trying to keep finances separate, you can work out a fair way to split the tax bill.