Credits

• If you are married and file your taxes jointly, you can take advantage of certain tax credits including the Hope and Lifetime Learning credit, child and dependent care credit and the adoption expense credit.
  
  

Significance

• If you are married but file separately, you are only responsible for your own tax liability. When you file jointly, you combine income, credits and deductions with those of your spouse and you are both responsible for any taxes due.
  
  

Phase-Out

• If you file your taxes as married filing separately, you can avoid the personal tax exemption phase-out that sometimes occurs when you file jointly. If your spouse makes significantly more money than you do, filing separately may allow you to claim your personal tax exemption. In 2008, the personal tax exemption was phased out at $239,950 for married filing jointly and $119,975 for married filing separately.
  
  

Considerations

• If you and your spouse have disproportionate income, you may wish to file a joint return. The tax brackets for married filing jointly are more generous than for married filing separately. These tax brackets change from year to year, so consult IRS Form 1040 instructions for specific information pertaining to your current tax year.
  
  

Deductions

• If you file married but separately, you or your spouse may be able to take huge advantage of itemized deductions such as medical expenses. Itemized deductions help lower your adjusted gross income, which lowers taxable income.