Married filing seperately

[dkd1]

Hi

I typically file jointly but I saw this time there is a benefit to filling sep. I have a file where I have entered data as married filing jointly? Can I use that or do I have to create two separate TurboTax files? 

Do I enter the w2s for spouses just for their returns?

Do I distribute mortgage interest and property taxes equally?

Any other gotchas?

Thanks

Dharmesh

[VolvoGirl · Accepted solution]

You need to use 2 new separate accounts.

Sometimes people don't realize the differences between filing  Joint and MFS.

Unless you have a specific reason to file separate returns,

It is usually better to file Joint. Joint has the lowest tax rates and the highest Standard Deduction.   And if you are in a Community Property state MFS gets tricky to figure out.  Here's some things to consider about filing separately……

In the first place you each have to file a separate return, so that's two returns.  And if you are using the Online version that means using 2 accounts and paying the fees twice.  

Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong.  If one person itemizes deductions on Schedule A then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!  (Business expenses are not itemized deductions.  Business goes on Schedule C not A.)

And there are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

And contributions to IRA and ROTH IRA are limited when you file MFS.

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

See …….

https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-...

[dkd1]

Thank you for the reply. I am experimenting to see how it comes out.

Our income bracket does not allow for earned income credit and other deductions. 

Do I enter the w2s and incomes in respective returns?

I am in CA, which is a Community property state.

So do I distribute incomes and mortgage taxes or property taxes equally?

Thanks