Married, filing separately on combined return?

[barthjones]

I completed a joint return then wanted to see if it would be better to file separately. So, I changed the filing status to that. When I did, the Federal Refund amount increased by several hundred dollars. My questions is, are we good to go? Can I file this return as is ... or do I need to create a separate return for me & another for my wife? There is no prompt to do so.

[VolvoGirl]

Yikes you can't do that.  It will mess up your return.

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

https://ttlc.intuit.com/community/married/help/how-can-we-compare-married-filing-jointly-with-marrie...

How to start another return in the Online version

https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-start-another-return-in-turbotax-onli...

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

https://turbotax.intuit.com/personal-taxes/cd-download/ 

[VolvoGirl]

Unless you have a specific reason to file separate returns,

It is usually better to file Joint. Joint has the lowest tax rates and the highest Standard Deduction.   And if you are in a Community Property state MFS gets tricky to figure out.  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 then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!  

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-...

[xmasbaby0]

You cannot just change from MFJ to MFS by a couple of mouse clicks.    You need to prepare two separate returns---one for each spouse in order to compare the results to a joint return.   Luckily you are using the CD/download that gives you the flexibility to do that.

When you file MFS you have rules to follow.   If one spouse itemizes the other spouse has to itemize.  Or else you  both have to use standard deduction----not one of each.   

If you were legally married at the end of 2021 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 $25,100 (+$1350 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...

[barthjones]

Thanks you for your prompt reply. I'm using the downloaded version of TurboTax for Home & Business. I would have hoped to see that explained as soon as I made the filing status change then. 

I would like to have my return checked by a TurboTax agent. Anyway I can do that?

[xmasbaby0]

Sorry---the "Live" experts only work with users of online software who are using the "Live" online software---they will not review a return prepared using desktop software.

[xmasbaby0]

When you are trying the MFS returns---one for each of you----in My Info it will ask if you were married , then it asks if you want to file together with your spouse.  Say NO to set up a MFS return.    Then enter only the data for the specific spouse.   Do that again for the other one of you.   Then compare the refund amounts to the refund you were seeing when you prepared a joint return.

[VolvoGirl]

No.  The expert live review is only available for the online web versions.     In the Desktop Home & Business version (which I have too) you can do unlimited returns like to test in.  Just go up to File-New.  Be sure to save each return with a different name so it doesn't overwrite the previous return and sonyou can tell them apart.

And the Desktop program has a What-If worksheet you can use to compare joint to separate.  If you have more questions please ask.  I can give you screenshots.

[barthjones]

Thanks. Is there a way to upload my offline 2021 TurboTax file to an online version?

[VolvoGirl]

No.  Not for the current year.  And you already paid for the program.   If you use the Online version you have to pay for that again.

[xmasbaby0]

It is truly not that difficult.   Go slowly and carefully.   Save each one under a name that you can find again.   With desktop you have no limit on the "dummy" returns you can prepare to try out various situations.

And.....for separate returns you would be paying for online TWICE.