Amended tax return to change filing status and split taxes paid on original tax return

[dnotestone]

My wife and I initially filed our 2024 income tax return jointly, but then we amended it to the filing status of “married-filing separately” to reduce our state income taxes. As a result, our total federal tax liability increased by only $3, which my spouse paid with her 2024 Form 1040-X.

We paid a large balance due on the original return. On the amended returns, we split that payment between the two of us so that I owed nothing on my return and my wife only owed $3 on her Form 1040-X. But IRS sent me a refund for the amount that my wife claimed and then they will want my wife to pay them back that amount with interest and penalty for late payment.

According to Treasury Regulation § 1.6015(b)-1(b), my spouse and I are permitted to split the payments made with our original joint return however we agree. AI Google says, "While Treasury Regulation § 1.6015(b)-1(b) primarily addresses estimated tax payments, the principle that spouses can agree on an allocation generally extends to other payments made with a joint return. Tax code section 6015 was repealed; however, the regulation has continued to guide IRS practice regarding how to divide estimated tax payments." 

Our total tax on the two amended returns only increased by $3. So common sense would say that all we needed to do was to pay the extra $3, but I know the law does not always use common sense. So, my question is, am I correct that my wife and I can agree to split our tax paid on the original joint return however we want on our amended separate tax returns, or must I claim the entire amount on my amended tax return and my wife now owes a large amount with interest and penalties?

Thank you in advance for your replies.

[xmasbaby0]

When --- exactly -- did you amend your joint return to switch to married filing separately?   The IRS does not allow you to make the change  from MFJ to MFS after the filing deadline on April 15.   Did you amend before April 15?

[Michael652]

Yes, in general, spouses can agree on how to allocate payments made with a joint return when filing amended separate returns. Treasury Regulation § 1.6015(b)-1(b) supports this approach for estimated payments, and the IRS typically allows spouses to split prior joint payments as they agree. You don’t have to claim the full amount on one return—splitting it to reflect your $0 and your spouse’s $3 liability is reasonable and in line with IRS practice, though you may want to document your allocation in case of any IRS questions.

[KarenL · Accepted solution]

@dnotestone It is correct that you can allocate. But to make the change to Married Filing Separate, it must be done prior to April 15th as @xmasbaby0 stated. 

If this is the case, you should contact the IRS for clarification and next steps to avoid potential underpayment penalties and interest that would be imposed on your wife's amended tax return. If you don't get the assistance you need, you can reach out to the Taxpayer Advocate Service. 

[AmeliesUncle · Accepted solution]

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@dnotestone wrote:

am I correct that my wife and I can agree to split our tax paid on the original joint return however we want on our amended separate tax returns

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Yes, but the IRS computers aren't set up that way.

In most cases, the IRS computers will allocate the payment to the first person on the tax return.  If you want to allocated differently, you likely will need to call the IRS to have them allocate it in whatever way you want, *IF* you can find the right person that knows how to do it and *IF* they have finally fixed their transfer program (I think they fixed it now, but for many, many months the ability to transfer payments from one spouse to another was broken).

As a side note, in regard to the other answers that mentioned changing from MFJ to MFS needs to be done by April 15th, that is only partly true.  It needs to be done by the due date of your tax return; if you filed an extension, that would be October 15th.

[dnotestone]

We did file the amended returns before the due date of April 15, 2025 to change our filing status from MFJ to MFS. thank you. 

[dnotestone]

I am returning my refund to IRS with a request to transfer the funds from my account to my spouse's account to agree with our Form 1040-Xs. I hope this works or I will contact the Taxpayer Advocate Services or appeal their decision.

Thank you.