Filing a joint return may be less complex and qualify you for tax credits. Filing separately depends on your situation and how your itemized deductions stack up against the standard deduction.
When you live in a community property state and file separate returns, you each must report 50 percent of your spouse's income and half of income generated by community assets, plus all of your separate income. You also have to decide who will claim dependent children.
Filing taxes in community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin) as Married Filing Separately (MFS) can be complicated.
Certain states have laws about community property defining how they expect MFS couples to share, or allocate, income.
TurboTax has allocation screens and a worksheet to assist you in entering any adjustments your community property state may require when filing separately.
For more information, refer to IRS Publication 555 Community Property.
If you're using TurboTax Online, we recommend that you transfer your return to the TurboTax Desktop version. You'll save time by entering less information.
Begin by completing a MFS federal tax return for you and your spouse, as you'll need the amounts for different income categories, tax amounts, and all tax payments for each of you. If one of you plans to itemize deductions, the other person must itemize as well. Otherwise, you'll both have to use the Standard Deduction.
You may not be able to e-file, in which case TurboTax will guide you through the steps to print and mail your return.
TurboTax FAQ: Married Filing Separately in community property states