Joint Tax Payment

What is a joint tax payment?

When married couples file their taxes jointly for a given tax year, the IRS bases the amount the couple owes on the couple’s combined income. If the couple owes money when they file their tax return, they only need to make a single payment to cover what each of them owes the IRS. This single payment is known as a joint tax payment.

Since their taxes are combined, the IRS won’t require each individual to submit their own return or their own payment. This is true even if the married couple owns a business and has to pay estimated taxes every quarter. If they’re filing jointly, the couple will be able to make joint estimated tax payments together.

FAQ

Who gets the refund if you file jointly?

Just as joint tax payments let couples make a single payment to the IRS for both spouses, the IRS only issues one refund. The IRS deposits the refund in the bank account specified at the time of filing. This could be a joint account if couples have combined finances or either spouse’s individual account. It’s up to each couple to decide how they want to receive their refund. Regardless of how couples file, it’s a good idea to track tax refund payments to make sure returns are processed quickly and correctly.

What is the joint tax form called?

The main form that couples will use when filing joint tax returns is the IRS Form 1040. If spouses own and operate a business (together or separately), they may need to file additional forms, like the Schedule C tax form, with their taxes to account for business expenses and earnings.

Does a joint tax return have to be signed by both parties?

Yes, both spouses will need to sign their tax return. Failing to do so will make the return invalid and could result in delays processing tax returns. Both spouses must also sign the tax return if they want to receive a refund if their tax situation warrants one. If couples are married and filing separately, each spouse only needs to sign their individual tax return.

Is it better to pay taxes jointly or separately?

Everyone’s situation is different. However, filing jointly often gives couples access to additional tax benefits that may not be available if they file individually. This may include the following:

• Lower tax bracket for total taxable income
• Additional income tax credits and tax breaks
• Potential for a bigger refund
• Lower total income tax liability

Keep in mind that tax law can vary from year to year and state to state. Consider speaking with a tax professional to learn how filing jointly or filing income taxes separately could impact your situation.