Can two people that stay in the same household file taxes separately?

[lbessette13]

A mom and dad file and a 28 yr old with dependents file separately ?

[xmasbaby0]

Yes, you can all file your own tax returns, even if you live within the same household and have the same mailing address.  What exactly is the issue?  Are you asking if tax returns can be filed by different people who live together?  Or are you asking about using the tax software and sharing it?   Please explain what you are trying to do.

[Bsch4477]

Mom and Dad can file their return and the 28 year old can file their own. But the 28 year old couldn’t file as Head of Household if Mom and Dad provided more than half the keeping up the home. The 28 year old would have to file as single or married separately, whichever applies. 

[lbessette13]

Was told that two people that stay in the same household can’t file using the same address cause it would get flagged and a penalty would be added to the filers account. 

[xmasbaby0]

Who told you that?   That information is incorrect and silly.   Someone gave you poor advice.   Think of roommates who live together----do you think they have problems when they file tax returns for themselves using the same mailing address?   Or married couples who file married filing separately?  They can use the same mailing address.  It is very common for people living at the same mailing address to file their own tax returns -- for all kinds of reasons.     Parents and dependent children can file their own returns ---- from the same mailing address.  parents and their children who are no longer dependents---but still living at the same address--can also file their own tax returns.  That does not result in being "flagged" or getting any sort of penalties. 

[lbessette13]

Thanks so much for your response!

[Mike9241]

For online preparation, each return needs its own account. The desktop versions - full pc or MaC 64 bit operating system - allows preparing and e-filing up to 5 returns. Were mom and dad married at the end of the tax year? As to the 28-year-old he may be a qualifying relative of either mom or dad if mom and dad can not or do not file jointly

Qualifying Relative and eligible to be claimed as a dependent the rules are:

• Live in your household the entire year. Absences for medical treatment are ignored. If they did not then one of the relationship tests must be met. so how is he related to each of you?  Note that the 28-year-old can not claim any dependents if mom or dad can claim him/her as a dependent. 
• 28-year-olds gross income for 2023 is less than $4,700
• taxpayer (mom and dad if they are filing jointly) provides over ½ his/her support
• isn’t a qualifying child of another taxpayer

[Opus 17]

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@lbessette13 wrote:

Was told that two people that stay in the same household can’t file using the same address cause it would get flagged and a penalty would be added to the filers account. 

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Generally, no.  And in fact, the address on your tax return is where you want to get your tax-related mail (checks, other notices) and does not necessarily have to be the place you live.

However, I will never say never.  The IRS doesn't care.  But, I can imagine a scenario where (for example) the adult child has filed for government benefits (like Medicaid, welfare, or SSDI) because they claim to live alone and no one helps support them.  By filing a tax return from the same house, it might clue in the state to the fact that they do receive support from family members, and their benefits claim might need to be investigated.  

But 99% of the time, neither the IRS nor the state will care that several taxpayers share the same address.  

[rai1962]

Can married couple used the same 1095a to file separate tax returns?

[Vanessa A]

Yes.  If your name is on the 1095-A, you must enter it on your tax return unless someone else is claiming you as a dependent on their return.  If you are married filing separately you will both need to enter the 1095-A on each of your returns. After the form is entered you will be asked if this was a shared policy, if it was you will click yes.  Then you will be able to allocate an amount to you and your spouse.  You can claim 100% or 0%, they can do the same as long as it adds up to 100%. 


 

[Samson14]

Can two married people file their taxes separately to keep their tax bracket lower on the higher income to enable a better refund.

[VolvoGirl]

It probably won’t be lower tax bracket to file separately.  Joint is almost always better.  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.  The Desktop CD/Download program would be better to use.

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!  And if you are in a Community Property state it can be complicated to figure out.

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-...

[Opus 17]

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@Samson14 wrote:

Can two married people file their taxes separately to keep their tax bracket lower on the higher income to enable a better refund.

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If you are legally married, you have the option of filing a joint return or separate returns as married filing separate.  If you file married filing separately (MFS) then each spouse files a return with only their own income, deductions and credits.  If you share a child or children, each child can only be claimed as a dependent on one of the separate returns, not both.

For the reasons give by the other expert, filing separately almost always results in higher taxes.  However, my wife and I did find several years ago, that by filing separately, we paid about $500 more on our federal returns but got back $1000 more from the state, because the state tax brackets were calculated differently.  The only way to know for sure is to test both options.

There are some reasons you might want to file separately even if you know it will cost you. 

1. One spouse owes a federal tax debt or other federal debt.  The debt will be collected from any joint refund. Filing separately allows the other spouse to keep "their share" of the refund.  You can also file jointly and include an "injured spouse" form, but this form is evaluated by the IRS and can take a long time.  Filing separately means you get what you claimed, whether it is more or less than you might have gotten otherwise.

2. You might also file separately if one spouse is working under the table or is otherwise cheating the IRS.  If you sign a joint return, you are equally liable for all statements and tax, and if one spouse is cheating on their taxes, the IRS can come after both spouses if you signed a joint return.  Filing separate returns means each spouse is solely responsible for any errors, omissions or fraud.