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Level 1
December 17, 2025
Question

Notice 2014-7

  • December 17, 2025
  • 2 replies
  • 38 views

My wife and I both have W-2s that are subject to Notice 2014-7, can we file separately?

    2 replies

    Mike9241
    Level 15
    Level 15
    December 18, 2025

    first note that MFS is generally the worst filing status for a married couple. there are rare exceptions. as to your question. A married couple can choose to file using the Married Filing Separately (MFS) status even if they are subject to IRS Notice 2014-7. Notice 2014-7 primarily addresses the tax treatment of certain Medicaid waiver payments, not a couple's federal filing status. 

     

    there is no quick correct answer as to what filing status is best. to find the lowest tax you  may have to do 3 returns. 1 each MFS and a joint return. 

    Mike9241
    Level 15
    December 18, 2025

    Yes, you can file Separately or file Jointly.  Notice 2014-7 has no effect on filing status, and filing status has no effect on Notice 2014-7.

     

    As Mike indicates, strictly from a overall tax viewpoint, Jointly usually has better overall results than Separately, but there are exceptions.