change spouse deduction settings

[jay_53]

Married filing separately: I would like to run two scenarios where my spouse and I both take standard deduction vs. both itemize deductions; but I don't see any way to change answer to spouse's deduction status.

[xmasbaby0]

Did you already e-file?   If you already e-filed, do not mess with the returns you submitted or you will destroy them.    You can create "dummy" accounts if you want to compare various scenarios if you are using online TT.

Or are you using the CD/desktop software?  We cannot tell from your post which software you are using.

If you are filing MFS, you both have to itemize or you both have to use standard deduction.  It cannot be one of each.   

If you were legally married at the end of 2023 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 $27,700 (+$1500 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 since with online, you get one return per fee.

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-separ...

[jay_53]

We have not yet filed. I understand the rules about both using the same deduction method. My question has to do with the specific function in TurboTax Deluxe desktop where I was asked about my spouse's deduction method. I answered itemized, but would like to go back and change that so we can run the scenario of both using standard deduction.

[JohnB5677]

Yes, you can choose between the standard and itemized deduction on TurboTax desktop.

TurboTax Desktop

1. Open your return and
2. select Federal Taxes.
3. Select Deductions & Credits.
4. When asked how you want to enter your deductions and credits,
5. Select I'll choose what I work on.
6. Scroll all the way to the bottom.
7. You'll see Your 2023 Deductions & Credits screen and
8. Select Done with Deductions.
9. Continue until you see The Standard [or Itemized] Deduction is Right for You!
10. Select Change my deduction and choose which one you'd like.

                 

 

[xmasbaby0]

That question is asked in My Info when you indicate that you will file MFS.  Tell the software that you want to use standard deduction or itemized deduction.

[jay_53]

Thanks, but this still doesn't meet my needs. There instructions tell me how to change MY deduction choice. I need to change my SPOUSE'S election from itemized to standard and see what effect it has for both of us.

[xmasbaby0]

You have to make those changes on your spouse's return, too.   You have two returns to deal with.