Tax season can feel like a maze, especially when you're navigating the complexities of filing as a married couple. But fear not! If you're wondering "how does filing jointly work on TurboTax," you've come to the right place. This comprehensive guide will walk you through every step, helping you leverage TurboTax to make the process as smooth and beneficial as possible.
Are you ready to tackle your taxes with confidence and potentially unlock some serious savings? Let's dive in!
The Power of Married Filing Jointly (MFJ)
Before we get into the nitty-gritty of TurboTax, let's understand why "Married Filing Jointly" is often the preferred choice for couples. When you file jointly, you and your spouse combine your incomes, deductions, and credits onto a single tax return. This generally leads to:
Lower tax rates: Joint filers often benefit from wider tax brackets, meaning more of your combined income is taxed at lower rates.
Higher standard deduction: For the 2024 tax year, the standard deduction for MFJ is $29,200, significantly higher than for individual filers. This allows you to reduce your taxable income substantially.
Eligibility for more credits: Many valuable tax credits, like the Earned Income Tax Credit, American Opportunity Tax Credit, and Child and Dependent Care Credit, are often only available to couples who file jointly.
While there are rare instances where "Married Filing Separately" might be advantageous (e.g., if one spouse has significant medical expenses and a lower AGI), most married couples find that filing jointly results in a lower overall tax liability or a larger refund.
Step 1: Setting Up Your TurboTax Account and Choosing Your Status
This is where your joint tax journey begins!
Sub-heading: Getting Started with TurboTax
If you're new to TurboTax: Visit the TurboTax website (turbotax.intuit.com) and choose the product that best suits your needs (e.g., TurboTax Deluxe, Premier, Self-Employed). Create a new account with your email and a strong password.
If you're a returning TurboTax user: Log in to your existing account. If you previously filed separately, you'll need to indicate a change in your filing status.
Sub-heading: Selecting "Married Filing Jointly"
Once you're in the "My Info" section of TurboTax, you'll be asked about your marital status.
Indicate you are married: Select the "Married" option.
Confirm joint filing: TurboTax will then ask if you want to file this return together with your spouse. Absolutely say "Yes" to this question to initiate the joint filing process.
Enter both spouses' information: You will be prompted to enter personal details for both you and your spouse, including:
Full names (matching Social Security cards)
Social Security Numbers (SSNs)
Dates of birth
Occupations
Prior year's Adjusted Gross Income (AGI) for both spouses (this is crucial for e-filing verification)
Remember: Even if one spouse has no income, you still include their personal information on the joint return.
Step 2: Combining Your Incomes
This is where the "joint" aspect truly comes into play. TurboTax makes this surprisingly straightforward.
Sub-heading: Entering W-2s and Other Income Documents
As you proceed through the "Wages & Income" section, TurboTax will guide you through entering all sources of income for both you and your spouse.
For each W-2: When you enter a W-2, TurboTax will ask whose W-2 it is. Carefully select the correct spouse's name for each W-2. Do NOT combine the figures from your W-2s into a single entry. TurboTax will sum them up automatically in the background.
For 1099s and other income forms: The same principle applies. Whether it's income from investments (1099-DIV, 1099-INT), retirement distributions (1099-R), self-employment income (1099-NEC), or any other income source, ensure you attribute it to the correct spouse as prompted by TurboTax.
No need to manually add incomes: TurboTax is designed to handle the aggregation of your and your spouse's income automatically once you input each individual's income sources. This means you don't need to manually calculate your combined gross income; the software does it for you.
Step 3: Navigating Deductions and Credits
This is where you can significantly reduce your taxable income and potentially increase your refund.
Sub-heading: Standard Deduction vs. Itemized Deductions
TurboTax will help you determine whether taking the standard deduction or itemizing deductions is more beneficial for your combined tax situation.
Standard Deduction: For most couples, the generous Married Filing Jointly standard deduction (for 2024, $29,200) is a great choice and simpler to claim.
Itemized Deductions: If your combined itemized deductions (such as mortgage interest, state and local taxes, medical expenses exceeding 7.5% of your AGI, and charitable contributions) exceed the standard deduction amount, TurboTax will automatically recommend itemizing. You'll then need to enter the details for each eligible deduction. Remember, if one spouse itemizes, the other must also itemize on the joint return.
Sub-heading: Claiming Tax Credits
TurboTax will ask you a series of questions to identify all the tax credits you and your spouse may be eligible for. These are direct dollar-for-dollar reductions of your tax liability, so they are incredibly valuable.
Child Tax Credit: If you have qualifying children, TurboTax will guide you through claiming this credit.
Child and Dependent Care Credit: For expenses paid for the care of a qualifying dependent to allow you (and your spouse) to work or look for work.
Education Credits: Such as the American Opportunity Tax Credit or Lifetime Learning Credit, if either of you (or your dependents) pursued higher education.
Earned Income Tax Credit (EITC): This is a refundable credit for low to moderate-income working individuals and families.
Other credits: TurboTax will prompt you for information relevant to various other credits you might qualify for, based on your combined income and specific circumstances.
It's crucial to answer all questions accurately and provide all necessary documentation to ensure you claim every credit you're entitled to.
Step 4: Reviewing Your Return and E-filing
The finish line is in sight! This step is about accuracy and submission.
Sub-heading: Thorough Review
TurboTax has a robust review process designed to catch common errors and omissions.
Run the "Smart Check" (or similar feature): TurboTax will automatically review your entire return for consistency, completeness, and potential errors. Pay close attention to any warnings or suggestions it provides.
Double-check personal information: Verify that both your and your spouse's names, SSNs, and dates of birth are precisely correct. A typo here can lead to rejections.
Confirm income and deduction entries: Quickly scroll through the summary of your income, deductions, and credits to ensure everything looks correct and no income sources were missed for either spouse.
Understand your refund/amount due: TurboTax will clearly display your calculated refund or the amount of tax you owe. Take a moment to understand these figures.
Sub-heading: Signing and Submitting Your Return
Once you're confident in your return, it's time to file.
Both spouses must agree: When filing jointly, both you and your spouse are equally responsible for the accuracy of the return and any tax owed. This means both of you need to digitally sign the return within TurboTax.
E-file for speed: TurboTax offers electronic filing (e-file), which is the fastest and most secure way to submit your return to the IRS. It also provides quicker refund processing.
Choose direct deposit: If you're expecting a refund, opt for direct deposit. You can even choose to split the refund into multiple bank accounts if you wish.
Print and save: Even if you e-file, it's always a good idea to print a copy of your completed return for your records. TurboTax also saves a digital copy in your account for future access.
Step 5: What Happens After You File
The waiting game begins, but there are ways to track your return.
Sub-heading: Tracking Your Refund/Return Status
IRS "Where's My Refund?" tool: After e-filing, you can typically check the status of your federal refund within 24-48 hours using the IRS "Where's My Refund?" tool on their website. You'll need your SSN, filing status (Married Filing Jointly), and the exact refund amount.
State refund tracking: Most states also have their own online tools to track the status of your state tax refund.
TurboTax status: TurboTax will also provide updates on the status of your e-filed return, letting you know if it has been accepted by the IRS and your state.
Sub-heading: Addressing Potential Issues
While TurboTax minimizes errors, sometimes issues can arise.
Rejections: If your return is rejected (often due to an incorrect AGI from the previous year or a mismatched SSN), TurboTax will notify you and provide clear instructions on how to correct the issue and re-file.
IRS notices: If the IRS has questions or needs further information after processing your return, they will send you a letter. Respond promptly and provide any requested documentation.
10 Related FAQ Questions:
Here are some common questions about filing jointly on TurboTax:
How to know if I qualify for Married Filing Jointly?
You qualify if you are legally married on the last day of the tax year (December 31st). This includes common-law marriages recognized in your state.
How to combine incomes when filing jointly on TurboTax?
You don't manually combine them. TurboTax will prompt you to enter each spouse's income documents (W-2s, 1099s, etc.) separately, and it will automatically sum them for the joint return.
How to enter my spouse's prior year AGI on TurboTax?
TurboTax will ask for both your and your spouse's prior year's AGI for e-filing verification. This can typically be found on line 11 of your respective Form 1040 from the previous year.
How to change from Married Filing Separately to Married Filing Jointly in TurboTax?
If you've started a "Married Filing Separately" return and wish to change to "Married Filing Jointly," you'll typically need to go back to the "My Info" section and adjust your filing status. TurboTax will then guide you through adding your spouse's information.
How to amend a joint tax return on TurboTax?
If you need to amend a previously filed joint return, TurboTax has an "Amend Your Return" feature. You'll typically need to use Form 1040-X, and TurboTax will help you navigate this process.
How to address common errors when filing jointly on TurboTax?
Common errors include incorrect Social Security Numbers, misspelled names, or using the wrong prior year AGI. TurboTax's "Smart Check" feature helps catch these, and if rejected, TurboTax will provide clear instructions for correction.
How to decide between Married Filing Jointly and Married Filing Separately?
For most couples, Married Filing Jointly offers more tax benefits (lower rates, higher standard deduction, more credits). TurboTax can run "what-if" scenarios to compare the outcomes of both filing statuses to help you decide.
How to get a refund directly deposited into two separate accounts when filing jointly?
When you choose direct deposit for your refund in TurboTax, you'll usually have the option to split the refund and deposit different amounts into multiple bank accounts.
How to get help from a tax expert within TurboTax for joint filing questions?
TurboTax offers "Live" options where you can connect with a tax expert or CPA for personalized advice and review of your return.
How to access my prior year joint tax returns on TurboTax?
TurboTax typically stores your past filed returns in your online account for several years, making it easy to access them for reference or to transfer data to your current year's return.
By following this detailed guide, you'll be well-equipped to navigate filing jointly on TurboTax, ensuring accuracy and maximizing your potential tax benefits. Happy filing!