Filing separately 2021 from jointly in 2020

[joannattmnt]

Hi,

My spouse and I are filing separately in 2021. We used to file jointly in 2020. In TurboTax, it asks to enter last year's refund and last year's payment/withholding. For refund, I think I will enter half on mine and he will enter half on his. How do I enter payment/withholdings? Do I enter half of total of both our payments/withholdings? Or do I enter the withholdings only on my W-2? 

Thanks,

Joanna

[Critter-3]

For refund, I think I will enter half on mine and he will enter half on his.  The joint 2020  state refund is simply entered 1/2 on his and 1/2 on yours.

How do I enter payment/withholdings? Do I enter half of total of both our payments/withholdings? Or do I enter the withholdings only on my W-2?   What payment/withholdings are you talking about?  None of the 2020 amounts are entered on a 2021 return.   If you are filing separately for the 2021 return then you each enter only your income/expenses/withholdings  on your returns ... none of the other persons info will go on your return. 

[joannattmnt]

The question of 2020 payment/withholding was on the same page and is right below the question of 2020 refund. Not sure the purpose of this. I don’t remember it was in last year’s software. Seems to be new. In all the previous years, TurboTax only asked the refund amount.

[Critter-3 · Accepted solution]

Ok ... you never saw it before because you had been  filed jointly.  If you used the standard deduction in the prior tax years then you can skip that section completely.  But if you itemized you will need to get that information from the 2020 return and enter your portion of those items so the program can determine if any of the state refund is taxable.  

Not sure why you want to file separately this time but be aware there could be negative consequenses of doing so.

If you were legally married at the end of 2021 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 $24,000 (+$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-separ...

[joannattmnt]

Thank you for your through explanations! My spouse is in a different state and is determined to file separately as single. I'm qualified to file as head of household.

However, the question was on tax payments/withholding in 2020. We both had only W-2 withholdings and no estimate tax payments in 2020. And we did take standard deductions, but it seems not related to the questions. Do I just enter my W2 withholdings or half of both our W2 withholdings? 

[Critter-3]

Ok ... first if you are married and lived together at all any time during the last 6 months of 2021 you cannot file HOH.  And if the other spouse can file HOH  and you cannot then you cannot file single you must file MFS.   And just because you live in different states doesn't mean you cannot file a joint return.

Next ... if you used the standard deduction last year then do NOT enter any of the state refund in the program so you can skip this entire section altogether.  Delete the 1099-G so you don't need to answer any of those questions in that section.