CPA and CFO of Pure Financial Advisors, “Big Al” Clopine explains that 90% of the time, it is better to file taxes jointly because your income taxes will be lower. Rates are worse if you file separate, but it is important to run the taxes both ways to find out which option is better for you and your spouse’s situation.
Transcription:
“Hi, I’m Alan Clopine, CFO of Pure Financial Advisors, and you are watching Pure’s Question of the Week. The question is: [If] I’m married, should I file separate or joint? The answer is actually pretty easy. For 99% of you, you want to file joint, because your income taxes will be lower. When you live in California, this is a community property state, so look at it this way–husband and wife. Half of husband’s income is allocated to the wife. Half of wife’s income is allocated to the husband, 50/50. You end up with two identical returns filing separate, and the rates are worse filing separate. The only case where it might be better to file separate in California is when one spouse comes to the marriage with separate property, and it’s kept as separate property. One spouse has different income than the other, and you might want to run the taxes both ways just to see what works out better. Even in that case I would tell you about 90% of the time you’re better filing joint. You’ve been watching Pure’s Question of the Week.”
