topic Would it be reasonable (and close enough, saving myself a... in After you file

How to divide our tax refund between spouses (we got married last year)?

Anonymous — Thu, 06 Jun 2019 07:29:47 GMT

My husband and I got married in September. We keep separate finances but are filing as married filing jointly. How should we split our tax refund between us?

Last year, my federal tax refund was about $1300; his was only $47. This year, filing jointly, our federal tax refund is about $1400. I'm guessing that because of the exemptions we've both claimed on our W-4s (which haven't changed since we got married), most of the refund should be mine, based on my income, but I can't find any information about how to determine what portion of your refund is from which income source. Any help?

as new lovey-doveys you could just split it 50-50

fanfare — Thu, 06 Jun 2019 07:29:49 GMT

as new lovey-doveys you could just split it 50-50

There is no precise way to do this, because everything on...

Zbucklyo — Thu, 06 Jun 2019 07:29:50 GMT

There is no precise way to do this, because everything on a married joint return is calculated together. One solution is to prepare two married filing separate returns, figure out refunds based on that, and then apportion the actual refund based on that percentage. Or do the same for two single returns. Example: Married joint return has refund of $1400. Your MFS return has refund of $1200. His MFS return has refund of $100. You claim 12/13 of $1400; he claims 1/13.

Would it be reasonable (and close enough, saving myself a...

Anonymous — Thu, 06 Jun 2019 07:29:52 GMT

Would it be reasonable (and close enough, saving myself all that work) to calculate the proportion based on our single returns from last year instead?

Sure, as long as your spouse agrees. Really, any mechani...

Zbucklyo — Thu, 06 Jun 2019 07:29:53 GMT

Sure, as long as your spouse agrees. Really, any mechanism that works for the two of you is fine. Yes, it is a pain in the butt. I used to do it for my wife and me (using single returns instead), because we paid a fairly large marriage penalty, she had to pay self-employment tax, etc. and used an Excel worksheet. But I'm a tax geek.

Awesome. Thank you so much!

Anonymous — Thu, 06 Jun 2019 07:29:55 GMT

Awesome. Thank you so much!

Re: How to divide our tax refund between spouses (we got married last year)?

RMcPeak — Tue, 18 Feb 2020 15:24:05 GMT

I developed a spreadsheet to help my spouse and I divide our return equitably based on proportional income and taxes withheld. You can get it here: https://www.teacherspayteachers.com/Product/Tax-Return-Division-Between-Spouses-5260263.

Hope it helps!

Re: How to divide our tax refund between spouses (we got married last year)?

alexmitev — Sat, 30 Jan 2021 23:05:27 GMT

I am sorry but I regret that I spent $2.12 on your spreadsheet. It is pretty simplistic and DOES NOT show how to split the money from the tax return. And I am being really polite here.

Re: as new lovey-doveys you could just split it 50-50

alexmitev — Sat, 30 Jan 2021 23:06:35 GMT

LOL ... this is not always the case

Re: as new lovey-doveys you could just split it 50-50

Critter-3 — Sat, 30 Jan 2021 23:34:50 GMT

How can we compare married filing jointly with married filing separately?

If you already created a joint return in the TurboTax CD/Download software, there's a quick way to see how filing separately affects your federal return.

Note: This won't work in TurboTax Online.

Open your return and select Forms in the top right corner of the window.
Click Open Form and type What-If Worksheet (it may appear as What-If Wks).
Check the MFJ vs. MFS box at the top.
Scroll down to Balance Due (Refund) located under Line 74.
- The second column shows the federal outcome for a joint return, and the third and fourth columns, respectively, show the outcome for the taxpayer and spouse if filing separately.
- Negative numbers are refunds, positive numbers are taxes due.

However, this doesn't give you the whole picture because it doesn't account for your state return. For a true apples to apples comparison, you'll need to prepare your returns both ways.

Related Information:

How do I switch from filing jointly to filing separately?

Re: There is no precise way to do this, because everything on...

Janipaba — Mon, 13 Dec 2021 19:04:05 GMT

How about if the spouse pocketed the whole tax return amount?

Re: There is no precise way to do this, because everything on...

DoninGA — Mon, 13 Dec 2021 19:19:40 GMT

@Janipaba wrote:

How about if the spouse pocketed the whole tax return amount?

That is between you and your spouse. Or if you are being represented by a lawyer in a separation/divorce situation, speak with your attorney.

Re: There is no precise way to do this, because everything on...

Burny — Thu, 31 Mar 2022 13:38:50 GMT

@Zbucklyo I agree, this seems like an equitable solution for that case and prob most cases in general.

Would be curious to hear your thoughts and thoughts others may have on the following case:

Person A and B are a married couple with no dependents but significantly different income. Person A accounts for 80% of the taxable income.

If they were to file MFS, Person A gets a refund of $1,500 and B would have a balance due of $4,000

If the couple files jointly, the refund is $3,800.

How do you split this fairly?

Re: as new lovey-doveys you could just split it 50-50

Southwest7777 — Sun, 16 Apr 2023 18:46:03 GMT

Critter-3's answer is amazingly right on target. Any such What-If option for state taxes?

Re: as new lovey-doveys you could just split it 50-50

HeatherPLO — Sun, 16 Apr 2023 19:20:08 GMT

This information would depend on your individual state. Select your state at the Help Article here for their Department of Revenue website.

@Southwest7777

Re: How to divide our tax refund between spouses (we got married last year)?

kristinwyn9 — Sat, 09 Dec 2023 21:18:21 GMT

did you ever find out what happens when spouse pockets the whole refund

Re: How to divide our tax refund between spouses (we got married last year)?

Critter-3 — Sat, 09 Dec 2023 21:30:58 GMT

The IRS/state will not intervene in this situation once the refund check is issued ... now it is a civil matter.

That is between you and your spouse. Or if you are being represented by a lawyer in a separation/divorce situation, speak with your attorney.

Re: There is no precise way to do this, because everything on...

nnj4x4trails — Sun, 06 Oct 2024 19:15:29 GMT

@Burny For the couple that jointly is getting a $3800 refund, it may seem logical to proportion the refund according to their relative income, however...this approach doesn't account for how much they withheld during the year.

For example, if the lower earning partner overpaid their taxes all year, and the higher earning partner underpaid (or broke even), then that should effect how the refund is allocated.

I don't have a good answer for this "how to equitably share tax liability" question, which is why I'm reading these questions. 🙂 We split our shared expenses according to income, but handling taxes is tougher. We're trying to base it on tax liability, but the fact that we have different deductions makes it harder. (MFS, they owe more if we go standard, I owe more if we itemize.)