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Married Filing Separately (MFS) removes eligibility for a number of credits, deductions and benefits provided by Married Filing Joint (MFJ) filing status.    MFS filing status potentially results in the following situations: Higher tax liability because of a lower standard deduction for that status. Each spouse’s income will be taxed at the Single rate. Itemizing deductions can be potential problems. If one spouse itemizes deductions, the other spouse is required to itemize deductions even if that spouse has no deductions. This situation erases any standard deduction potentially increasing tax liability. MFS filing status cannot deduct student loan interest and education deductions. The Child and Dependent Care deduction may be eliminated. Typically, you will lose eligibility for the Earned Income Credit. The Retirement Savings Contributions Credit will be reduced to have the benefit of filing MFJ. MFS filing status can potentially reduce or eliminate eligibility for the Child Tax Credit. Retirement Contributions may be limited under the MFS filing status.  The MFS filing status affects other credits and deductions as well.   The taxpayers will have to complete their own cost benefit analysis to determine which option offers the most beneficial financial outcome. You will have to estimate your tax liability and compare that to the benefits offered by the Income-Driven Repayment (IDR) program for lower the student loan payment. In other words, which option provides the greater benefit at the end of the year.

@alainncat ,  thank you for your answers to my questions.  What I get so far is as follows : (a) You and spouse  lived in the USA for a number of years  ( assuming that you were not long-term resident rules ), and passed the SPT for the  calendar/tax year 2025. (b) You left the USA during the  year 2025 and there for  are dual status  -- Resident for the period 01/01/2025 till exit date  ( say 06/30/2025 for argument's sake ).  So you file a 1040 return covering 01/01/2025  till 06/30/2025 and a Non-Resident return on 1040-NR for the period  07/01/2025 till 12/31/2025 and taxed ONLY on US sourced income. (c) You entered  Ireland on 07/01/2025, became a resident for the year 2025 and took advantage of the  "Split Year Resident --  and thus  your US earnings for the period prior to entering Irish residency is not taxed by Ireland.  My reference here  is  Irish tax manual  -- ..>>> Part 34-00-11 - Split year residence- section 822 Taxes Consolidation Act 1997. Is this what you are trying to achieve ---  US taxes only world income till your exit, Ireland taxes only world income thereafter and DTT applicable ONLY for  US sourced income ( post exit ) that is taxed by both USA and Ireland? Or am I in left field ?    

It's hard to tell where you are receiving this message.  Please see this link for more details to help narrow down the section where you are receiving this message.     Also, did you happen to have a QBI carryover from a prior year and the message you are getting is referring to that?  If that's a possibility, then also see how do I report a business loss or carryover from my K-1 if that applies.

I file jointly with my wife we have 2 children.  We both work at this side/small sole proprietor business and receive other W2 income for our household.  We file everything together on one return sorted out using the Turbo Tax software.  After entering every business receipt possible for expenses, travel, milage, etc.  we still end up paying over 20% of just the small business's total income each year.  I want to know more about small business deductions so I can continue to use Turbo Tax instead of cancelling my use of the product and going to an accountant.  What resources does Turbo Tax provide to help couples with a small side business lower their tax burden?  

The receipt of a large bonus during the year can definitely cause implications in your tax situation, and being proactive can alleviate potential issues at tax time!   Without knowing the details of your tax situation, it is impossible to project what impact the bonus will have on your tax bracket and overall liability.  TurboTax does have a module within the software where you can enter estimated amounts for 2025 and it will project the end result, making it easier to decide if you need to have additional withholdings. The program will show you the amounts on your 2024 return as a comparison, so you can make sure you are accounting for the other items of income and deductions you may have.  Instead of using the module inside TurboTax 2024 software, you can also use our Tax Calculator software to estimate your tax liability based on estimated income and deductions you enter into the calculator. You can find the calculator at this link:  https://turbotax.intuit.com/tax-tools/calculators/taxcaster/   Often employers will withhold federal taxes on a bonus payment at a flat 22% rate - so if your income puts you in a higher tax bracket, you risk having not enough withheld. Even if you are not above that rate, it is possible that the bonus could have an impact on your other deductions and credits, and therefore may have a significant impact on your tax return.  You do have the option to have the employer withhold more on the bonus payment - simply fill out a new W4 form before the bonus payment occurs, and then after that payment, submit another W4 form to go back to the "old" withholdings. It's important to verify with your employer the timing of submitting the new form - you want to make sure you leave time for your employer to process the new W4 form before they process the bonus payroll.   You mentioned opening a Roth account to help with the tax bill of the bonus. Keep in mind a Roth IRA is an after-tax account, so contributing to a Roth IRA will not change your tax situation for the current year.  You may be able to contribute to a Traditional IRA account, which could then reduce your tax bill, as a contribution to a Traditional IRA may be deducted on your tax return.  However, there are income limits to be able to deduct a contribution to a Traditional IRA, so before planning on this you should check the limits to make sure you are below the threshold for deducting an IRA contribution on your tax return.  Likewise, if you chose to contribute to a Roth IRA, there are income limits for Roth contributions, and if your income exceeds those limits you are not eligible to contribute to a Roth IRA.  

You are confusing 2 different things.  Business expenses and the standard deduction are completely separate and unrelated.    Personal deductions (mortgage interest, state and local taxes, gifts to charity and medical expenses) are deducted on Schedule A, and you can take the standard deduction if that is more than your itemized deductions.   There is no standard deduction for business expenses.  Business expenses are subtracted from gross revenue on Schedule C to determine the net profit.  You should always list ordinary and necessary business expenses that you can prove with reliable records, no matter how small they are.  

A sole proprietor would report business income and expenses on Schedule C, Profit or Loss From Business, on their tax return.  The question is whether or not you have a business.   The Schedule C instructions state "Use Schedule C (Form 1040) to report income or (loss) from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity. For example, a sporadic activity, a not-for-profit activity, or a hobby does not qualify as a business. To report income from a nonbusiness activity, see the instructions for Schedule 1 (Form 1040), line 8j."   Although when an activity ceases to be considered a business is a grey area, the two factors in your situation that I would consider are as follows: You indicated that you do not anticipate to generate income in 2025 or in the future. You indicated that you have stopped taking new cases in January 2023. Based on the factors you outlined, it would appear that your activity does not rise to the level of being considered a business, and therefore should no longer be reported on Schedule C.     

Your spouse's W-2 withholding can be a huge asset in meeting your estimated tax obligations and avoiding penalties. You'll calculate your estimated tax liability based on your combined household income and deductions.

Yes, if you missed the April 15 and June 15 quarterly estimated tax payments for your self-employment income, you should generally pay those missed amounts along with your September 15 payment or as soon as possible.