Myself and wife are working... My question is, do we need to file the tax return separately or jointly?

You can file either way but you need to look at both ways of filing for the maximum return.

Thanks twinkiedooter for your reply... Could you please tell, what we need to look for to get max. return ?

You could (for fun) use one of the online tax programs. I like Turbo Tax for one. You can put all sorts of scenerios into the online program and see which filing status would benefit you the most. The online version is free.

Do you own your own home? Do you have a lot of medical bills. Do you have children?

You may find that you do better filing jointly if you don't have enough deductions. Most people do file jointly if they don't own a home or have large medical bills.