I have TurboTax Premier, I want to file married filing separate return. Can I enter both my salary and wife's salary along with all other income and then Turbo tax will automatically split income (community state), deductions and create two separate returns OR I have to manually split the amounts and manually create two separate returns in Turbo Tax?
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No---you have to prepare two completely separate returns --- one for each spouse. Are you using the CD/download or online software? If you are using online you need two accounts with different user ID's and you will need to pay twice.
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 $25,100 (+$1350 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
You have to create two totally separate tax returns if you are filing as Married Filing Separately.
Only your income is entered on your tax return and only your spouse's income is entered on their tax return.
You both must use the Standard Deduction or you both must use Itemized Deductions.
Realize the filing separately is the worst way to file a tax return when married. See this TurboTax support FAQ - https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-...
If you live in a community property state then filing separately is even more complex. See this TurboTax support FAQ - https://ttlc.intuit.com/community/married/help/married-filing-separately-in-community-property-state...
I tried to use What If worksheet but it doesn't split wages for me and spouse. As per IRS 555 publication wages are considered community income, do you know why wages in Turbo Tax are considered separate?
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