Couldn't find the combined separate on turbotax help. Not sure what the implications would be if we did the combined separate. Turbotax is recommending the combined separate, my husband makes quite a bit more than I do. Thanks!
Montana does have this filing status. "Married combined" and "married joint" is similar in that you are filing just one tax return for the two of you. TurboTax does not have a "side-by-side" comparison for this, but you can choose to select "Married, separate, combined" at the beginning of the Montana state return interview, write down the tentative refund (or amount owed), and then repeat the process using the "Married Filing Joint". You would want to chose the option that results in the higher refund (or less tax owed).
Either filing status is acceptable. My state also has this status, and usually (but not always) a couple in which both spouses have income have a better result using the "separate combined" status. But, again, not always. You will want to use the status that gives you the best refund or lowest tax due.
There is no federal filing status called combined separate. There is married filing separately and married filing jointly. Where is TurboTax recommending this?
Your state also matters for this question. What state do you live in?
If you file MFS (Married Filing Separately) keep in mind that there are several limitations to MFS. Married filing Jointly is usually the better way to file.
A few of those limitations are: (see IRS Pub 17 for the full list
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p17.pdf">https://www.irs.gov/pub/irs-pdf/p17.pdf</a> page 21
1. Your tax rate generally is higher than on a joint return.
2. Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return.
3. You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. For more information about these expenses, the credit, and the exclusion, see chapter 32.
4. You cannot take the earned income credit.
5. You cannot take the exclusion or credit for adoption expenses in most cases.
6. You cannot take the education credits (the American opportunity credit and lifetime learning credit) or the deduction for student loan interest.
7. You cannot exclude any interest income from qualified U.S. savings bonds you used for higher education expenses.
8. If you lived with your spouse at any time during the tax year:
a. You cannot claim the credit for the elderly or the disabled, and
b. You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received.
9. The following credits and deductions are reduced at income levels half those for a joint return:
a. The child tax credit,
b. The retirement savings contributions credit,
10. Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return).
11. If your spouse itemizes deductions, you cannot claim the standard deduction. If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return.
- If you live in a community property state you must allocate community income between both spouses..
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- Community property states. If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. See Publication 555. <a rel="nofollow" target="_blank" href="http://www.irs.gov/publications/p555/index.html">http://www.irs.gov/publications/p555/index.html</a>
See this TurboTax article for help with this.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately">https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately</a>
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states">https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states</a>
Montana does have this filing status. "Married combined" and "married joint" is similar in that you are filing just one tax return for the two of you. TurboTax does not have a "side-by-side" comparison for this, but you can choose to select "Married, separate, combined" at the beginning of the Montana state return interview, write down the tentative refund (or amount owed), and then repeat the process using the "Married Filing Joint". You would want to chose the option that results in the higher refund (or less tax owed).
Either filing status is acceptable. My state also has this status, and usually (but not always) a couple in which both spouses have income have a better result using the "separate combined" status. But, again, not always. You will want to use the status that gives you the best refund or lowest tax due.
I also live in Montana. TurboTax is forcing me to file "married filing combined-separate". I cannot change this in Forms view (Line 2a of Form 2) and no question prompts allow me to change it.
How can I change my filing status??
You may file separately on the same form unless one spouse is a Montana resident, and the other is not. Go back to Personal Info and check your state residency status.