Investors & landlords

can't answer for sure. you really need to do 2 MFS returns and a joint return. you pssibly can do this udsing online and viewing summary results. desktop would allow you to review all 3 returns in their entirety

 

i did some guesswork and did two separate returns and a joint with a lot of guesses.

what i came up with is only Federal results

as MFS both of you would have a combined tax liability of $160K

but filing a joint return only about $133K

 

reason is simple the MFS rates are much higher on your share of taxable income vs the rates for joint.

for joint it's like each of you earned 1/2 the income so you pay 2 times the tax on 1/2 the combined taxable income 

 

 

put another way $310K of split income using joint rates has a marginal tax bracket of 24%

$560K of MFS income hits the 35% bracket

but like I said my numbers are pure guesstimates but the results conform to what's expected when 1 spouse has a lot of income and the other virtually nil and they file MFS