Big difference in return if i file separately vs jointly

Forum|Forum|6 years ago
January 24, 2020
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TurboTax Live Deluxe Online

xmasbaby0

Level 15

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-separately

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

coleangrimsonAuthor

Level 2

Just using the Turbo Tax software when i filed it as jointly we were looking at $400 return from feds and paying in $270 to the state. When i picked it as married, filing separately the return jumped to $1200 federal and $850 state return. That is why i am wondering if the best option for us IS filing separately because it appears our tax liability is lower that way. It also said our son can be a dependent.

xmasbaby0

Level 15

What do you mean "picked it as MFS?" Did you prepare TWO tax returns--one for each of you? Did you follow the rules and and did each of your either use standard deduction or each of you itemize?

Please explain exactly what you did to change from the joint return to separate returns.