Am I first Time Filer when switching from Married filing jointly to married filing separately?

[tbostrup]

My wife and I have been filing Married/Jointly for years, but this year it looks like it will be advantageous to file with status Married filing separately.

Do we then say we are "First Time Filers"?

If not, how do we get individual AGI's to use for prior year whan asked (filing electronically)?

[xmasbaby0 · Accepted solution]

If you filed a joint return for 2021 you each have the same AGI for 2021----the amount from line 11 of the 2021 Form 1040.  You are not " first time filers."   

You seem to think MFS will be better----but make sure you know all of the rules.  You both have to file the same way.   Either you both itemized or both use standard deduction----it cannot be one of each.   And...if you are in a community property state it gets even trickier.

If you were legally married at the end of 2022 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 $25,900 (+$1400 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

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...

[tbostrup]

Thanks for the thorough answer.  It does appear that we'll be better off with Married filing Separately.  None of the special exclusions apply to us, I am retired and my wife is working.  Most of the itemization deductions would go to her, and while I won't have very much in the way of deductions, it seems we will save significantly of this way.  we wouldn't get to itemize if filing jointly, but we'd be close.  I won't know for sure until I complete working both returns, but right now it looks like it will make the extra work worthwhile.