- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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