World of Finances

There are certain situations when you should always compare filing a joint return with filing separately. Compare the results of a joint return and separate retun when one spouse has:

• Large medical bills that exceed 7.5% of their adjusted gross income.

• Large employee business expenses, such as unreimbursed business mileage on a personal vehicle that exceed 2% of their adjusted gross income.

• Miscellaneous itemized deductions that exceed 2% of their adjusted gross income, such as investment management fees, passthrough deductions from an estate or trust, or job search expenses.

• A large casualty loss, such as an uninsured property loss from an accident or storm, that exceeds 10% of their adjusted gross income.

(Note: Adjusted gross income is simply all of your taxable income less certain deductible adjustments such as contributions to an individual retirement account, contributions to a health savings account, tuition, and self-employed health insurance payments.

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