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Level 2
April 16, 2022
Question

Single vs Married Filling Separate

  • April 16, 2022
  • 4 replies
  • 12 views

I changed my filling status from Single to Married Filing Separate and my refund went from $1995 to $255  !!

Why the large negative impact ?

Thx

 

    4 replies

    Level 7
    April 17, 2022

    Married filing separate is entirely different than filing Single. 

    If you are married, you can not file single, you must file either Married filing Joint, or Married filing separate.

    Likewise, if you are single, you can not file married.

    Generally, the IRS considers you married if your state considers you to be married.

    Usually, filing jointly is the better option.

     

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    Level 15
    April 17, 2022

    Married filing separately is usually the worst way to file.   If you are married you would most likely be better off to file a joint return.

     

     

    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-separately

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**