My wife and I agreed as well on how to reallocate as well. Questions:
Is this simply a matter of entering the agreed allocations of joint estimated tax payments into the fields for estimated tax on each return? Will there be an "error" if for instance the credit elect from the joint return during the prior year is not allocated entirely to the primary SSN?
The IRS forms and instructions say to make notations regarding agreed allocation on the 1040/1040SR. I don't see how this can be done in Turbo Tax, particularly given the instructions to write-in the other party's SSN.
Finally - and the greatest worry - even if it goes through on Turbo Tax, the IRS when it matches payments shown on the return and payments shown under the primary SSN in their computer systems, will show a mismatch and reject both returns. Our state (PA) has a form you can file to request reallocation for current year estimated taxes, if filing separately but made jointly during the year. I don't see a way out re the federal.
All of this is important this year given the new rules on exclusion of tax on unemployment income. I won't even get into that conundum - re married filing separately! The new law allows each married person to exclude tax on up to 10,200 on unemployment income, if the FILER has under $15,000 adjusted gross income. "Household" is used here but the regs and IRS form itself makes no distinction in filing status.
I'm really only interested in the answer to the question on estimated tax - how to do in Turbo Tax, how to get through once e-filed re payment mismatch. .
