I filed jointly with my husband last year, but need to calculate only my 2016 AGI for the FASFA because we are separated. How can I do that?

[scassibry83]

In filling out the FASFA, I have to use only my income information because my husband and I are separated and my daughter lives with me. We filed a joint return last year.  I know my income, but how do I know what deductions to make to calculate an AGI for just me?

[Karen1209 · Accepted solution]

Located the information below on fastweb regarding how the situation should be handled for completing FAFSA.

If the parents are separated, only the income and assets of the custodial parent are reported on the FAFSA, regardless of the tax filing status of the parents. If the custodial parent files a return with a status of married filing separately, identifying her adjusted gross income (AGI) from the income tax return is easy. On the other hand, if the parents filed a joint return, the custodial parent must calculate her income and taxes paid using information from the joint return and the relevant IRS W-2 and 1099 forms. The income calculation is based on the income from the custodial parent’s W-2 forms, plus half of the income (or losses) from joint accounts and investments.

There are two approaches to calculating the taxes paid attributable to the custodial parent from a joint return. The preferred method is to use the IRS Tax Table or Tax Rate Schedule to calculate the amount that would have been paid if a separate return had been filed, assuming the appropriate deduction and number of exemptions. The other method involves a proportional distribution of the taxes paid on the joint return based on the custodial parent’s share of the joint AGI.

https://www.fastweb.com/financial-aid/articles/how-do-you-calculate-individual-income-from-a-joint-r...

[scassibry83]

My question was really more about how I determine what deductions I am eligible to take when I separate my income from our joint return.  Is it appropriate to split our itemized deductions or should I pretend I was filing separately and use those deductions?  And, do I have to use itemized deductions if our joint return was itemized or may I use the standard deductions?

[ToddL]

The IRS will accept any reasonable approach for dividing up itemized deductions that would otherwise go on a joint return.

If both spouses are filing separately (MFS), you have to use the same method of claiming deductions - either standard or itemized.

What is reasonable? A "50-50" approach is always reasonable - since you are still married, many expenses are based on previously shared incomes and joint debts (e.g. mortgages, car payments, medical expenses), even if incurred more by one spouse than the other.  You can also allocate the deductions in proportion to your respective incomes, or based strictly on who is paying the expense.

Alternatively, some deductions can be allocated other than as described above. For example, home mortgage interest and property taxes can be allocated according to whoever is living in the house or whoever is making the payments or some other agreed-upon split. Same for charitable contributions where a joint pledge was made, but only one spouse is capable of meeting the obligation.

The only deductions that ought to be split according to a strict income-based formula would be state income tax deductions and employee-related business expenses, when applicable.

Also, there is a special set of rules that can allow someone who is a custodial parent take the HOH when they are married filing separate. <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p501.pdf">https://www.irs.gov/pub/irs-pdf/p501.pdf</a>

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