Married Filing Separately
Tax Glossary Term
Definition
Married Filing Separately (MFS) is a filing status for married taxpayers who choose to file individual returns instead of a joint return. While it is available to any married couple, it comes with significant drawbacks: narrower tax brackets (the MFS brackets are exactly half the MFJ brackets), a lower standard deduction ($16,100 versus $32,200 for MFJ in 2026), and disqualification from many tax benefits. Under the OBBBA, MFS filers cannot claim the tips deduction or the overtime premium deduction at all, and their caps on other deductions are halved. MFS also disqualifies you from the Earned Income Tax Credit, education credits, student loan interest deduction, and the adoption credit, and it reduces the Child Tax Credit phase-out threshold. So why would anyone choose MFS? There are a few strategic reasons: if one spouse has large medical expenses (the 7.5% AGI floor is easier to clear with a single income), if one spouse has significant student loan debt and is on an income-driven repayment plan, if spouses want to keep their tax liabilities legally separate, or if one spouse suspects the other of tax fraud. In community property states, MFS returns require splitting community income 50/50 regardless of who earned it, adding complexity. Most married couples save money filing jointly, so MFS should only be used after running the numbers both ways.
Example
Married couple, each earns $60,000:
MFJ: combined $120,000, standard deduction $32,200, taxable $87,800
MFS: each files $60,000, standard deduction $16,100, taxable $43,900 each
MFJ tax: ~$11,028 | MFS combined: ~$11,240
Plus MFS loses OBBBA deductions and many credits