My wife and I were married in June 2022. I have about 20 years with TurboTax, she about 5 years. I need to maintain my depreciation records and other info contained in previous filings. Can we calculate our tax as married, filing separately AND also see the tax liability by filing Joint? Explain how to do TurboTax can combine returns for long-time users of TurboTax.
Thanks for your continued support of TurboTax! We have an article here that explains how to run those comparisons.
Here's some general info on getting married. Did you both use Turbo Tax last year?
You can not transfer from or combine 2 returns or accounts. Just pick the return for the spouse that has the most complicated return to enter or has any depreciation or business or more investments. Or use the account for whoever you want to be listed first going forward (by the way you can not change the order of the names). Then add the other spouse's name, ssn and info to it.
You should usually file a Joint return which is only 1 return combined for the both of you. Make sure to stick with this one account for the future. Just ignore the other spouse's account.
Getting Married FAQ
And info on Getting Married…..
http://turbotax.intuit.com/tax-tools/tax-tips/Family/Getting-Married/INF12006.html
Is it better to file Joint or Separately?
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.
To compare Joint to MFS. If you are using the Online version, do NOT change anything on your return. You would have to start with a new account and do a test return. You don't have to pay unless you want to print it out. So you might need 3 accounts, one for Joint and two MFS, one for each spouse.
How to Compare Joint to Married Filing Separately
How to start another return in the Online version
It would be better to use the Desktop CD/Download program. It can do unlimited returns and has a What If worksheet to compare them and many other advantages over the online version.
You can buy the Desktop CD/Download program here