Wisconsin exemptions when married filing separately

[ecuakandy]

Hello all,

I am reviewing the paperwork that TurboTax prepared for me, and I think there is an error.

I elected to do married filing separately, and TurboTax filled in 2 for the exemptions (so the total exemption amount is 2x$700=$1400).

However, Wisconsins tax rules say that when married filing separately you can't take your spouse's $700 exemption: https://www.revenue.wi.gov/DOR%20Publications/pb109.pdf

Is there a way to correct it from 2 to 1 in TurboTax?

Thank you,

Andrei

[LenaH]

You may take the $700 exemption only for yourself and dependents claimed on your return. Are you claiming one dependent on your return ($700 x 2) and your husband is claiming none ($700)? 

Example:  You and your spouse support three dependent children with marital property funds.  On separate returns,  you may divide the dependents between you.  If you claim two dependents,  your spouse can claim one dependent.  In this case,  you would take a  $1,400  exemption for dependents and your spouse would take a  $700  exemption for dependents.  You can't divide the total exemption for dependents  ($2,100) equally between you.  You must divide the exemption into multiples of  $700  (a  full exemption). 

[ecuakandy]

Thank you, Lena.

Actually, in my case my spouse is non-resident alien with no US sourced income.

According to https://ttlc.intuit.com/community/taxes/discussion/spouse-is-non-resident-alien/00/105092 I can claim the exemption for her.

There are no dependents.

What do you think?

[LenaH]

Per the state of Wisconsin, you can claim a personal exemption for your spouse if your spouse had no gross income for  U.S. tax purposes and cannot be claimed as the dependent on another U.S. taxpayer's return.  This is only for Residents of Mexico or Canada or U.S. nationals. 

In addition, you get a deduction of $700 per exemption. Therefore, the $1,400 ($700 x 2) would be correct. 

Publication 122

@ecuakandy

[ecuakandy]

Publication 122 seem to concern part-year residents and nonresidents.

In 2021 I was a full-year resident of Wisconsin (US Citizen). My spouse has no citizenship or residency in US, Mexico, or Canada in 2021.

Can I still claim personal exemption for my spouse then?

[AmyC · Accepted solution]

Maybe. South Korea is also a possibility. Please see page 39 Pub 122 Tax Information for full details

Pub 122 is also for full year residents married to part-year or nonresidents, which would be the case for you. It discusses alien spouses in several places. Pages 8, 25, 35, and 37 would also be pertinent to you. 

[ecuakandy]

Great, thank you for clarification! I did not pay attention to page 8.