Married filing separately - Reporting IRA

[ohyehiitspatrick]

Hello,

My wife and I are planning on filing our taxes as married filing separately. I am coming across a lot of questions when we are trying to use TurboTax to file them, such as:

-Do we both fill out returns on TurboTax?

-How do we go about reporting joint deductions? (Such as property tax)

-How do we go about reporting separate things? (Such as individual IRAs, Savings accounts, etc)

I tried filing the returns both ways - doing a separate one for both my wife and myself, and then doing a combined one where I put in all our information into one form but I run into issues that poses questions above, such as:

-When I fill out a form for both of us, then trying to report IRA contributions, then it says I contribute too much (12K, but then says I contributed 6K too much).

-When I fill out a form separately, then I don't know what to do about our joint deductions - Do we both fill in what we pay on property taxes? Or divide it by two?

Very confused. I appreciate any help.

[MonikaK1]

If you and your spouse are using Married Filing Separately filing status, then you either both need to itemize your deductions, or you both use the standard deduction for Married Filing Separately, which is $12,950 for 2022 if under age 65.

When itemizing deductions, each deduction can only be used by one spouse even if both spouses paid for the expense. A deduction can be split between spouses filing separately as long as the total claimed by both spouses does not exceed the total deduction.

For 2022, 2021, 2020, and 2019, the total contributions you make each year to all of your traditional IRAs  and Roth IRAs can't be more than:

• $6,000 ($7,000 if you're age 50 or older), or
• If less, your taxable compensation for the year

In addition to the general contribution limit that applies to both Roth and traditional IRAs, your Roth IRA contribution may be limited based on your filing status and income. See this IRS webpage for more information.

Depending on other factors, it may still be better to file jointly. If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), you will need to split your community income evenly even if filing separately; the rules vary by state. Also, some tax benefits aren't available for Separate filing status.

You can use TurboTax Online to test different scenarios before deciding to file jointly or separately. Click here for more information from TurboTax on how to decide which filing status to choose.

[Mike9241]

-When I fill out a form for both of us, then trying to report IRA contributions, then it says I contribute too much (12K, but then says I contributed 6K too much).

you must indicate that $6k is for your IRA and $6K is for your spouse's. you can not contribute $12K to your IRA. so she needs her own account 

-When I fill out a form separately, then I don't know what to do about our joint deductions - Do we both fill in what we pay on property taxes? Or divide it by two? expenses must be split otherwise you are double dipping which the IRS strongly frowns upon.