Due to this structure, married couples filing jointly
may end up with a higher joint federal income tax liability compared to what they would incur collectively if they remained single and filed as single individuals.
In 2018, the standard deduction is $12,000 for single taxpayers and married individuals filing separately (up from $6,350 in 2017), $24,000 for couples filing jointly
(up from $12,700), and $18,000 for heads of household (up from $9,350).
If your spouse is also a teacher and you're filing jointly
, you might qualify for a bigger deduction.
For example, the highest rate (37%) now applies to taxable income greater than $600,000 for married filing jointly
and greater than $500,000 for single and head of household filers.
* Married filing jointly
and surviving spouses: $250,000.
Moss for 2008 based on the return he had filed, changing his filing status from married filing jointly
to married filing separately.
Along these lines, if you're a couple filing jointly
, you can also deduct the interest you pay on up to $100,000 in home equity debt.
Normally, up to $14,000 ($28,000 if filing jointly
) may be gifted from one individual to another each year without incurring gift tax liability.
For married couples filing jointly
, the 50 percent taxable figure applies if your combined income is between $32,000 and $44,000.
This exemption amount rises this year to $53,600 (up $800) for singles and $83,400 (up $1,300) for married couples filing jointly
The exemption is projected to rise to $82,100 for married couples filing jointly
and surviving spouses, $52,800 for unmarried single filers and heads of household and $41,050 for married couples filing separately in 2014.