What is the filing status for married individuals who report income and deductions on separate returns?

Married individuals who choose to report their income and deductions on separate returns would use the filing status known as "Married filing separately." This status is specifically designed for those who are married but prefer to keep their tax liabilities and deductions distinct from their spouse's financial activities. By selecting this option, each spouse is essentially responsible only for their own tax obligations and may benefit in specific situations, especially if one spouse has significant medical expenses or miscellaneous deductions that would not otherwise provide a benefit under joint filing.

It's important to note that while this status allows for separation of tax responsibilities, it also may result in a higher overall tax rate and the denial of certain tax credits and deductions that are available to those filing jointly. The choice of this status can be strategic, depending on individual financial circumstances.