You should look at it both ways. If you file MFS you cannot deduct interest paid on the student loan and you may lose some of the child-related credits you could get like childcare credit and earned income credit; you will also have a lower income for which to receive the child tax credit---which may or may not affect you.
It is not easy to compare MFJ to MFS using online TT but you can do it. Since you only get one return for each account and user ID, you have to use 3 accounts and user ID’s—one for MFJ and two for each of the MFS returns. Compare, choose, and file—and pay—accordingly.
It is much easier to do this comparison using the desktop version of TT installed from a CD or downloaded to your own computer. You pay once for the software and you can prepare multiple returns easily, and it has a “what if” feature that allows comparisons.
WHAT IF…?
If you are using Desktop software:
- With your return open, click Forms in the upper-right-hand corner
- Click Open Form
- In the Search area, type the word what. You should see the What If Worksheet listed, click to open it.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
