Hello again. I am trying to reduce a horrendous tax bite caused by a long term capital gain. The K-1 for the transaction reporting the gain is in my name only. My other income (W2 and Social Security) is considerably less than my wife's, approximately 1/6. We have no joint accounts, other than our mortgage and local property taxes (which exceed the standard deduction for married filing jointly). We have no carryover losses from previous years.
I have already completed a Married Filing Jointly return in Turbotax and just ran the What-If Worksheet. In the Married Filing Separately (MFS) columns, the Worksheet splits the capital gain evenly between my wife and I. Again, the K-1 (form 1065) for that gain is in my name only and results from an investment made prior to our marriage. The Worksheet does the same for interest income -- splits it 50/50 -- although most of it is from accounts in my name only. That doesn't seem right.
Also, line 72 of the Worksheet shows negative numbers. According to the TurboTax website, negative numbers indicate a refund. That is definitely not right in our case.
Bottom line: If the Worksheet calculations are off, do I need to start from scratch and create 2 new returns in Turbotax? Can I import data from last year's return (married filing jointly)?
I know it's a lot to ask, but help would be greatly appreciated.
