topic E- File in Deductions & credits

property tax deduction married filing separately

confused214 — Sun, 22 Mar 2020 17:18:40 GMT

Completed filling out my federal return; I itemized as did my spouse. I paid $13,486 in property taxes. The turbo tax summary only allowed $2576 in deductions. I thought that each spouse could claim up to $5000. None of the reasons for the difference stated in turbo tax relates to my situation.

Re: property tax deduction married filing separately

xmasbaby0 — Sun, 22 Mar 2020 17:26:48 GMT

You are right---you can each claim up to $5000 of the $10,000 limit. But---did your itemized deductions exceed your standard deduction? You only get the amount of itemized deductions above the standard deduction amount.

Your standard deduction lowers your taxable income. It is not a refund.

2019 Standard Deduction Amounts

Single $12,200 (+ $1650 65 or older)

Married Filing Separate $12,200 (+ $1300 if 65 or older)

Married Filing Jointly $24,400 (+ $1300 for each spouse 65 or older)

Head of Household $18,350 (+ $1650 for 65 or older)

Look on line 9 of your 2019 Form 1040 to see your itemized/standard deduction amount

Re: property tax deduction married filing separately

confused214 — Sun, 22 Mar 2020 17:33:33 GMT

Thanks.

Line 9 is $9608. So that doesn't meet the $12,200 (and I just turned 65).

Re: property tax deduction married filing separately

xmasbaby0 — Sun, 22 Mar 2020 17:40:18 GMT

Why are you filing separate returns? That is usually the worst way to file.

If you were legally married at the end of 2019 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $24,400 (+$1300 for each spouse 65 or older) You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit.

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI)

If you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separately

Re: property tax deduction married filing separately

xmasbaby0 — Sun, 22 Mar 2020 17:41:15 GMT

Oh----and "just turned 65" It goes by your age at the end of 2019.

E- File

aleciabelongstoj — Sun, 22 Mar 2020 17:54:43 GMT

Thank you for your responses, to clarify when I click on e-file it brings me to a screen that says These are the numbers the IRS will use to confirm you’re really you. my adjusted gross income is correct however my spouse’s adjusted gross income is identical to mine when it should be 0, does anyone know the reason why?

Re: property tax deduction married filing separately

aleciabelongstoj — Sun, 22 Mar 2020 18:00:12 GMT

Thank you for your response, we filed married filling jointly, it is just that my spouse made 0 and when I look at the adjusted gross income it has the same as mine, I rechecked the taxes and we filed correctly, does anyone know why in the screen right after I click on I want to e-file, it comes up with an adjusted gross income for my spouse ?

Re: property tax deduction married filing separately

xmasbaby0 — Sun, 22 Mar 2020 18:05:05 GMT

A joint return means the income is the same for both of you---it is your combined income as a married couple--doesn't matter if only one of you earned it.

Re: property tax deduction married filing separately

aleciabelongstoj — Sun, 22 Mar 2020 19:36:02 GMT

Thank you very much.

Re: property tax deduction married filing separately

confused214 — Sun, 22 Mar 2020 19:38:05 GMT

I appreciate your advice about the way I am filing, but given my life situation, I feel this is the best. I know it is going to cost us both money. None of the issues you raise apply to either of us--no dependents, no earned income credit, no IRA issues, no social security, we do not live in a community property state, etc. etc. etc.

It still begs the question of why Turbo Tax is not granting me the full deduction. Any other thoughts?

Re: property tax deduction married filing separately

confused214 — Sun, 22 Mar 2020 19:39:39 GMT

Thanks for clarifying the age 65 issue