How to split tax return money with spouse after filing married, filing jointly?

[nupur85]

Good Afternoon,

What would be the best way to go about splitting funds received from tax return after filing "married, filing jointly"- Any recommendations? My husband earns way more than I do, and I would like to split the return accordingly. I recently got married and filing first time as married...would like to stay financially independent. 

Thank you.

[emina]

Hi there, happy to help!
I have to admit, this is a tough one. The reason is because there is no precise way to do this.
When you are filing single, your standard deduction is certain amount, and based on your income you may qualify for some credits. If your income is too low, you may qualify for earned income credit. If your income is too high, you may not. So now that you are filing jointly, and lets say in the past you qualified for EIC, but now your husband's income takes you over the limit for the credit, you lose this credit. As a married person, your only other option is to file married filing separately. The disadvantage of this filing status is that it does not allow earned income credit, regardless the income. 
This may be the case for other credits and deductions for this filing status.

You may try both filing statuses, and see which one is more advantageous, which one gives better refund, and use that as some sort of guidance.
Here is a link that can help with this: Compare MFJ & MFS Also: Sign in and use our refund calculator. It’ll guide you through filing separately vs. jointly, and quickly estimate your next tax return.

Hope this helps! And congrats on getting married! 

[Sean Enrolled Agent]

@nupur85 ,

Great question!

There is no precise way to do this, because everything on a married joint return is calculated together.  One solution is to prepare two married filing separate returns, figure out refunds based on that, and then apportion the actual refund based on that percentage.  Or do the same for two single returns.  Example:  Married joint return has refund of $1400.  Your MFS return has refund of $1200.  His MFS return has refund of $100.  You claim 12/13 of $1400; he claims 1/13.

If you already created a joint return in the TurboTax CD/Download software, there's a quick way to see how filing separately affects your federal return.

Note: This won't work in TurboTax Online.

1. Open your return and select Forms in the top right corner of the window.
2. Click Open Form and type What-If Worksheet (it may appear as What-If Wks).
3. Check the MFJ vs. MFS box at the top.
4. Scroll down to Balance Due (Refund) located under Line 74.
   • The second column shows the federal outcome for a joint return, and the third and fourth columns, respectively, show the outcome for the taxpayer and spouse if filing separately.
   • Negative numbers are refunds, positive numbers are taxes due.

However, this doesn't give you the whole picture because it doesn't account for your state return. For a true apples to apples comparison, you'll need to prepare your returns both ways.

You may want to discuss this with your spouse in order to decide how to manage the refund. 

I hope this helps!

[nupur85]

Thanks for your wishes!! I'll look into the EIC and see how that might factor in our return analysis...

[nupur85]

Very very helpful. Thank you soo very much for this information!