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My PA-40 tax return is splitting all interest, dividends and capital gains between myself and spouse even though I have "Taxpayer & Spouse" checked in the ownership boxes

 
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4 Replies

My PA-40 tax return is splitting all interest, dividends and capital gains between myself and spouse even though I have "Taxpayer & Spouse" checked in the ownership boxes

Properly completed, the PA tax will be the same whether filed jointly or separately.  All calculations are performed on a per individual basis.  If you have Taxpayer & Spouse checked, that means the ownership of the income is split 50-50.

My PA-40 tax return is splitting all interest, dividends and capital gains between myself and spouse even though I have "Taxpayer & Spouse" checked in the ownership boxes

Sorry, is there a question here? If you're filing a joint return, it doesn't matter who is "credited" with the income you mention. It might benefit you to try a "filing separately" temp return (don't file it) to see whether you and your wife would benefit from this strategy.

My PA-40 tax return is splitting all interest, dividends and capital gains between myself and spouse even though I have "Taxpayer & Spouse" checked in the ownership boxes

Every year, it's the same thing. Pennsylvania splits the dividends and interest (even though you check "joint").

And every year, I white-out the number and combine the numbers onto one form.  (1) Why do they provide you with a box to check called:  "joint", if they won't let you use it?   (2) why print out an extra sheet of paper, splitting up the interest when you checked "joint"?   I thought the object was to simplify your taxes.  (3) if you'll notice, on both forms that they split up (against my direction), they put the husband's name only on the top of both forms.  So, since I mail my return anyway (I don't trust efile), I combine the numbers onto 1 form and check "joint".  Annoying.   And technically, it's not 50-50.  For some reason, one person has a few dollars more than the other.   They ask you if it's joint and when you say "yes", they split it in half.  

My PA-40 tax return is splitting all interest, dividends and capital gains between myself and spouse even though I have "Taxpayer & Spouse" checked in the ownership boxes

Is the split of jointly owned income resulting in a error in calculating your PA income tax???  PA calculates the income tax on a per person basis, printing out separate Schedules allows each person to follow how their PA income tax is calculated and for the income tax laws to be implemented correctly.  For example, PA does not allow the capital gains from one person to offset the losses incurred by their spouse.  Nor can the gains from rental property activities be used to offset losses by their spouse.  Each person's PA personal income tax must be calculated independently of the other person, following the PA income tax laws.   To quote from the PA instructions:  Joint Income - Joint Returns
Married taxpayers can file a joint tax return for convenience only. If you
and your spouse jointly own income-producing property, you must each
report your share of the income (loss). Income-producing property
includes savings accounts, businesses, securities, and real estate.
Spouses usually equally divide income from jointly owned property.

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