I have to start this answer with “Why do you do want to file
married separate in a community property state?” It is rare that this works out
better. Unless you have an overwhelming reason to file married
separate, I would file married joint and lump all your expenses together. But please read on...
Normally, expenses of the “community” are split 50-50 (see
the text below), so that you might get to deduct half and your spouse might get
to deduct half. But you must exceed the 10% (7.5% if you are over 65) of your
adjusted gross income (“AGI”, line 37 on the 1040) in order to be able to
deduct any medical expenses at all on Schedule A. Splitting your expenses in
half just makes that more difficult. And remember that when filing married separate,
that if one of you itemizes, both of you
have to itemize.
The IRS says on this subject:
"Question: My spouse and I are filing separate returns. How do
we split our itemized deductions? Answer:
If you and your spouse file separate returns and one of you itemizes deductions,
the other spouse must also itemize, because
in this case, the standard deduction amount is zero for the non-itemizing
spouse.
- You may claim itemized
deductions on a separate return for certain expenses that you paid
separately or jointly with your spouse.
- When paid from separate
funds, expenses are deductible only by the spouse who pays them.
- For example, if
otherwise deductible medical expenses are paid from an account owned by
one of the spouses or in a community property state from an account
that's the separate property of one of the spouses under the laws of that
state, only that spouse may claim a deduction for the expenditure.
- When expenses are paid
from funds owned by both spouses, such as from a joint checking account or
accounts considered community property under the laws of the state in
which the spouses reside, you should generally split the deduction between
you and your spouse.
- For example, if
amounts are paid from a joint checking account for interest on a
residence both you and your spouse own, you would each deduct half of the
mortgage interest paid on your separate returns.
- However, if only one
of you is eligible for a deduction for an expense (for example, real
estate taxes on a property owned only by the eligible spouse), only the
spouse who is eligible for the deduction is allowed to claim it, even if
the expense is paid from joint funds. Each spouse must maintain records
documenting who is considered to have paid the expense."
See the IRS
FAQ on Deductions.
If the money in your separate account came from community income (i.e. money that either one of you made
while married that can’t be considered separate under the law – and by default
most income is community income unless proven otherwise – then I would consider that a common account, even if your spouse’s name
is not on it.
