Deductions:MFS

[FrostyPanther]

I am 58, work full time.  My husband is 78, retired with SS income only, no taxes withheld.  If we file separately, can I take all mortgage interest and medical deductions or do I have to divide with husband?  *We are only looking at MFS to compare, hopefully save on tax liability.  MFJ standard deduction exceeds our itemized and we owe money.

[JosephF8]

Here's how that works:

When you are Married filing separately you can either Both claim the standard deduction or,

Both itemize. You can break the itemized deductions any way you want.

[FrostyPanther]

So if I split the mortgage interest, taxes and medical expenses with my husband I can give him a VERY small percentage of it? There isn't a rule about how to split it?  I ask because it really benefits us for me to take the deductions. If we file MFJ our tax liability is huge because we end up paying on a large portion of his Social Security since I still work full time.

[xmasbaby0]

If you file MFS   ---   MORE of your SS is taxable than if you file jointly.

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-separ...

[FrostyPanther]

We don't have any children at home or education expenses.  The only deductions are mortgage interest, taxes and a large amount of medical bills.  I guess the only way I can figure this out would be to do the taxes both ways.  I wish it wasn't so confusing.  Thanks to all for their responses.

[xmasbaby0]

It is easier to compare using desktop software.  

It is not easy to compare MFJ to MFS using online TT but you can do it.  Since you only get one return for each account and user ID, you have to use 3 accounts and user ID’s—one for MFJ and two for each of the MFS returns.  Compare, choose, and file—and pay—accordingly.

It is much easier to do this comparison using the desktop version of TT installed from a CD or downloaded to your own computer.  You pay once for the software and you can prepare multiple returns easily, and it has a “what if” feature that allows comparisons.