Can I amend my return to married filing separately?

[Mimi15]

Can I amend my return that I already filed to married filing separately because of the new changes from the stimulus plan?  

[macuser_22]

You can change from a joint return to separate returns if done before the May 17 due date.   The first listed spouse on the joint return would amend and change the filing status to separate and the spouse would file a new separate return.

Since amended returns  normal take 4 months to process, because of the COVID slow down they are taking about 6 months now so do not look for it until August or September.

Because of all the limitations of other credits on separate returns,  it is doubtful if it will result in any benefit.

[Mimi15]

With the new stimulus package, if my husband filed separately with his unemployment then we would at least get some stimulus if my wages are not included.  My wages put us over the threshold and as of now we are getting nothing because my second job pushed us past the 160,000 mark.  

[macuser_22]

Try test returns to see what is better. 

If you file MFS (Married Filing Separately) keep in mind that there are several limitations to MFS.  Married filing Jointly is usually the better way to file.
 
A few of those limitations are: (see IRS Pub 17 for the full list

https://www.irs.gov/pub/irs-pdf/p17.pdf page 21

1. Your tax rate generally is higher than on a joint return.
2. Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return.
3. You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. For more information about these expenses, the credit, and the exclusion, see chapter 32.
4. You cannot take the earned income credit.
5. You cannot take the exclusion or credit for adoption expenses in most cases.
6. You cannot take the education credits (the American opportunity credit and lifetime learning credit) or the deduction for student loan interest.
7. You cannot exclude any interest income from qualified U.S. savings bonds you used for higher education expenses.
8. If you lived with your spouse at any time during the tax year:
a. You cannot claim the credit for the elderly or the disabled, and
b. You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received.
9. The following credits and deductions are reduced at income levels half those for a joint return:
a. The child tax credit,
b. The retirement savings contributions credit,
10. Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return).
11. If your spouse itemizes deductions, you cannot claim the standard deduction. If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return.

- If you live in a community property state you must allocate community income between both spouses..
-
- Community property states.   If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. See Publication 555. http://www.irs.gov/publications/p555/index.html

 
See this TurboTax article for help with this.
https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

[hosituandung]

I use the online version of TT, and recently e-filed the MFJ (Married Filing Jointly) return, and now plan to amend this return using the MFS (Married Filing Separately) status, after the enactment of the 2021 American Rescue Plan.

After the e-file, I modified the original file to see if changing the filing status would help, and it does.

My questions are:

1. does TT know what file was used for filing, or do I have to recreate the MFJ file previously submitted to the IRS since TT-Online only keep in memory the most recent file with the latest modifications?

2. after I create an amended MFS file me, by going into the original MFJ file and removing my wife's W-2 form, can I e-file this amended return? will the old MFJ file be attached as back-up document?

3. for my wife amended MFS return, I understand that I have to go back to the original MGJ file and remove my own W-2; or will TT have a way around it? can I also e-file this second amended return?

4. or does TT know, and ask me all the pertinent questions (about whose income and deductions apply to which spouse...) and generate in the end 2 separate MFS returns, ready for a single new e-file?

Thanks for your feedback.

[macuser_22]

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@hosituandung wrote:

I use the online version of TT, and recently e-filed the MFJ (Married Filing Jointly) return, and now plan to amend this return using the MFS (Married Filing Separately) status, after the enactment of the 2021 American Rescue Plan.

After the e-file, I modified the original file to see if changing the filing status would help, and it does.

My questions are:

1. does TT know what file was used for filing, or do I have to recreate the MFJ file previously submitted to the IRS since TT-Online only keep in memory the most recent file with the latest modifications?

2. after I create an amended MFS file me, by going into the original MFJ file and removing my wife's W-2 form, can I e-file this amended return? will the old MFJ file be attached as back-up document?

3. for my wife amended MFS return, I understand that I have to go back to the original MGJ file and remove my own W-2; or will TT have a way around it? can I also e-file this second amended return?

4. or does TT know, and ask me all the pertinent questions (about whose income and deductions apply to which spouse...) and generate in the end 2 separate MFS returns, ready for a single new e-file?

Thanks for your feedback.

---

You must remove all your spouses information form an amended return.     Only the taxpayer listed first on the original return should amend to Separate.    It is not possible to remove all the first listed taxpayers information.

The other spouse must file a new separate return from a different account.

[Mimi15]

If I e-filed the first return (MFJ) and already got the refund, do I pay that back and then the IRS processes  the new returns?  

[macuser_22]

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@Mimi15 wrote:

If I e-filed the first return (MFJ) and already got the refund, do I pay that back and then the IRS processes  the new returns?  

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No, you do not pay it back.  The amended return  will account for that.

[macuser_22]

The amend function will be available after March 25.

Do not rush to amend - no hurry. You have 3 years to amend and amended returns are taking 4-6 months or longer to be processed so waiting a few weeks will make little difference and amending too soon might just compound the problem. (If you amend today you probably will not see the results until August or September).


To amend your 2020 tax return:

-- First, *wait* to see if your return has been accepted or rejected by the IRS or state. DO NOT do anything until you receive the accept or reject e-mail.

-- If rejected, you can correct and re-send your return.

-- If accepted you should *wait* until your return has been processed and you receive your refund or conformation that any tax due has been paid. (If you file an amended return while you first return is being processed it can cause extended delays for both returns if two returns are in the system at the same time). In addition, if the IRS makes any change on your original return, you might end up having to amend the amendment – a sticky process that can take a year or more).

-- Then you can start the amend process.

It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it. That is the only proof of mailing that the IRS will accept.

-- Amended returns can be mailed or e-filed - allow 8-12 weeks - can take up to 16 weeks (4 months) for processing.


See this TurboTax FAQ for help with amending:

https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

You can check the status of your amended return here but allow 3 weeks after filing for it to show up:
https://www.irs.gov/filing/wheres-my-amended-return

[VolvoGirl]

But you can only amend from Joint to Separate before the due date of the return.  So you don't have 3 years.  

[townrun]

If I have already filed married filing jointly and want to change to MFS.  Do both spouses file a 1040x or just one?  I get an error code when trying to do the electronic filing saying it is invalid to Efile amended return when change status to MFS

[macuser_22]

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@townrun wrote:

If I have already filed married filing jointly and want to change to MFS.  Do both spouses file a 1040x or just one?  I get an error code when trying to do the electronic filing saying it is invalid to Efile amended return when change status to MFS

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See my post at the start of this thread for the answer.

[townrun]

I called the IRS and they said both spouses need to file an amended return.  I could not locate directions on IRS website.  How do you know the second listed spouse needs to file a 1040 (New) and not amended.  Can you locate it anywhere?  I thought about doing both and sending to the IRS that way.  I can't get Turbo tax to allow me to do the amended return with my spouses data.  It only allows me to remove her and not remove myself

[Critter-3]

Only ONE MFJ  return was filed so that is the ONLY one that needs to be amended.  By removing the spouse's info  on the 1040X  the spouse is now considered to have not filed ... they will have to mail in an original return with a copy of the original and amended returns attached.

BUT BEFORE YOU AMEND ... be aware that if one of you uses the itemized deduction then both of you must itemize   OR  both of you will use the standard deduction.   And some deductions and credits are not allowed.  So before either of you put a return in the mail (efiling will not be allowed)  make very sure you want to amend.  

Also be aware that  amending will most likely NOT  get you a third stimulus check this year ... it did not happen last year for those who amended after filing the first time so you may be wasting your time for nothing.

The third stimulus check will be reconciled on the 2021 return you will file next year and you may look to see if filing separately will be better.   It may cost you more in federal taxes than the stimulus money you will get. 

[HGMITCH]

@townrun I spoke with the IRS yesterday (May 3, 2021) via their toll-free number, and their instructions were just as @macuser_22 said at the beginning of this thread. The primary taxpayer listed on the already filed MFJ return needs to amend theirs to MFS, and the secondary taxpayer needs to file a new return as MFS. In addition, the secondary taxpayer will most likely need to file an extension as they cannot file until the primary taxpayer's amended return has been accepted; an approximate 16-week lead time as of My 3rd.  This is the exact scenario my spouse and I are going through and I needed to get clarity directly from the IRS.    

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**