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lskbrown
New Member

Is there a planning tool in Turbotax to project 2020 taxes under multiple filing situations?

Should we get married by the end of the year?
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3 Replies

Is there a planning tool in Turbotax to project 2020 taxes under multiple filing situations?

What a loaded question--I doubt anyone here wants to advise whether you should get married.  There are a lot of considerations aside from income taxes to determine whether you should enter into marriage.

 

The desktop software offers a "What if" feature that lets you try out different tax situations.  The 2019 software is still available; 2020 software will become available in late November 2020.  

 

Some information on filing  tax returns for married couples:

 

If you were legally married at the end of 2020 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 $24,800 (+$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...

**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.**

Is there a planning tool in Turbotax to project 2020 taxes under multiple filing situations?

I should add---online software for 2019 is closed for starting new returns so there is not a way to "play" with online, and it does not have the "what if" feature anyhow.  If you want to use desktop software you need a full PC or Mac.

**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.**

Is there a planning tool in Turbotax to project 2020 taxes under multiple filing situations?

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