itemize vs. standard deduction when filling married filling seperately

[BB Fresh]

My wife and I live in the same household and are filling separately.  My understanding is if one itemizes the other has to itemize as well.  However, when I was completing my wife's taxes, turbotax stated that she would benefit by taking the standard deduction.  I thought that was not an option if the spouse already selected to itemize. 

[xmasbaby0]

When you file separate returns you must file the same way.  If one of you itemizes the other one must itemized, even if it is not advantageous to file that way.  That is one of the onerous pitfalls of filing separate returns.  Since your spouse does not have enough itemized deductions to exceed her standard deduction, she will pay more tax.

[DMarkM1]

Yes. Making a selection of standard or itemized is choice for everyone.  However, if filing as married separately you must choose what the other spouse chose even if the other option is better for the individual return.   What you might do is compare the net gain for the household for filing both standard vs both itemizing.    

[xmasbaby0]

It is not easy to compare MFJ to MFS using online TT but you can do it.  Since you only get one return for each account and user ID, you have to use 3 accounts and user ID’s—one for MFJ and two for each of the MFS returns.  Compare, choose, and file—and pay—accordingly.

It is much easier to do this comparison using the desktop version of TT installed from a CD or downloaded to your own computer.  You pay once for the software and you can prepare multiple returns easily, and it has a “what if” feature that allows comparisons.

And....are you aware of the child-related credits you are losing --if you have children-- when you file MFS?

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...