If a married couple decides to file separately, what is a potential consequence?

When a married couple chooses to file their taxes separately, several potential consequences arise from this decision. One significant aspect is that filing separately can lead to a higher total tax liability compared to filing jointly due to tax brackets and credits available.

Additionally, when couples file separately, they may see reduced deductions. The tax code provides many tax advantages and credits that are only available or are more beneficial to couples who file jointly. For example, certain deductions, such as those related to education and child tax credits, may be limited or completely unavailable to those who file separately.

Another consequence is the necessity of filing two separate tax returns. This not only requires additional time and effort as each spouse will need to document their own income, deductions, and credits, but it may also result in increased filing fees due to the preparation of two separate forms.

Thus, the comprehensive impact of filing separately encompasses all the mentioned consequences, making 'all of the above' the correct choice in this scenario.