But don't assume that income-averaging is always the best option. Some farmers will pay less tax by using the regular tax calculation. Married couples have a choice when it comes to filing status. Couples will find they'll usually pay less tax by filing joint returns rather than separate returns. The tax-rate schedule is lower on joint returns, and certain valuable tax breaks can be claimed only if you file a joint return, such as some credits for children.
Filing separately can pay off in some circumstances.
If you think filing separately might help, calculate your tax both ways to see which filing status results in the lowest tax. Avoiding penalties There are even ways to duck some IRS penalties. But there are ways to either minimize or avoid the penalty on the form. If you don't fill out the form, the IRS will figure the penalty and send you a bill. By filling out the form, you can compute the penalty using a more favorable formula than the IRS will.