(I have learnt great deal from this community. Thanks ahead for responses)
We have been filing MFJ with 2 dependents for all past years in CA, this year we are thinking if MFS will be beneficial because one spouse is not working.
Spouse 1: W2 income: 500k
Spouse 2: W2 income: 0
LTCG (joint accounts) : 80k
Dividend + interest: (joint accounts): 40k
If MFS, Spouse 2 will get a lower LTCG rate and no NIIT, given this situation, is it better to MFS since we were not eligible for all the credits allowed for MFJ due to high income?
