Married Filing Separately/Head of Household?

[dwburke3]

I have been separated (not legally) for over 15 years, but still married and own a home with my wife. Because we are still married with no legal separation, have a child and own a home, we have always filed jointly so that we can claim our child, the mortgage interest and property taxes. This year it was looking like I may owe money due to my wife claiming higher exemptions throughout the year. Just to see what the difference would be, I prepared a separate tax return for my wife as 'Married Filing Separately, letting her claim our child (I will claim the mortgage interest and property taxes). After answering the questions in the personal information section, Turbo Tax recommended the status of Head of Household for my wife which turned out to make a big difference (a refund as opposed to owing money). Not knowing any more than the basics when it comes to taxes, I wanted to confirm that this is correct. My wife and I have lived separately for 16 years. Our child lives in the house with her. Although we split the mortgage, my wife pays for the utilities, groceries, etc for that household. My questions are: 1.) Do you agree that the situation as described would qualify her for Head of Household status? 2.)Although almost everything I've read on the subject states that Married Filing Jointly almost always results in a bigger refund that Married Filing Separately, does it make sense that MFS/HOH is actually the better way to go? 3.) Is it ok that I claim all of the mortgage interest and property tax on our house as long as she's ok with it (she is)? Not sure if we have to split it evenly by law....any assistance with these questions would be greatly appreciated....thanks so much!  

[Seawolf67]

If the spouse filed HOH (std deduction), can the other spouse file MFS and itemize?

[macuser_22]

@Dan428 - yes, assuming the spouses have not lived together anytime during the last 6 months of the tax year.

[bwa · Accepted solution]

1.) Do you agree that the situation as described would qualify her for Head of Household status?

Under those circumstances, yes, it would.

2.)Although almost everything I've read on the subject states that Married Filing Jointly almost always results in a bigger refund that Married Filing Separately, does it make sense that MFS/HOH is actually the better way to go?

MFS/HOH will likely result in less tax than both of you filing MFS, but more total tax than filing MFJ.

3.) Is it ok that I claim all of the mortgage interest and property tax on our house as long as she's ok with it (she is)?

Yes.  A married couple can allocate mortgage interest between them as they choose.

Also note that HOH is an exception to the basic rule for separated spouses.  If you itemize deductions filing MFS she does not have to also itemize, but can claim the standard deduction.  That's because, as HOH, she is considered not married.

[dwburke3]

Thank you very much for all the information and taking the time to answer my questions. This was EXTREMELY helpful and very much appreciated!

[drmalowry]

In the situation described, if the wife/head of household itemizes deduction, may the husband/married filing separately claim the standard deduction?

[bwa]

You may not.  In a weird twist of the statute, the HOH filer is considered not married and can file either way.  However, the MFS taxpayer is considered married and must itemize if the HOH spouse itemizes.

[drmalowry]

Thanks for the prompt response. I agree, that is weird.

[lrf217]

This is really old, but I had a follow-up question. In this kind of situation, does one filer file HHS and the other MFS? Or would the non-HHS file as 'single'?

[bwa]

The non-HOH would file married filing separately.  In an non-understandable twist the the statute, the HOH filer is considered "not married" while the other spouse is considered married.  (Don't ask why the statute does that, just accept it.)

[connieg14]

Same situation.. so since we are in a community property state do both spouses report each others income? We are seperated but i live in the home with our kids (HOH) and lives else where (MFS).

[macuser_22]

@connieg14  - Community property laws apply to HOH and married filing separately.    Community property laws are different in each community property state and the IRS defers to state law.   Depending on the length of separation, the nature of the income (whether it is considered community income or not) can get complicated in separation   situations.  In some cases the community property laws can be disregarded.   It is usually best to seek guidance from a tax professional that deals with separation and community property law in your state.

Also see IRS pub 555.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p555/index.html">https://www.irs.gov/publications/p555/index.html</...>

[a40years]

I have similar situation we have not been together for along time 15 years here and there he says he's gonna change comes back for a couple months only this time his promise came with a house that he is on the loan he does direct deposit money into a checking account for the house he's on all the paper work
Should I file HOH or take him with me the taxes and interest paid on the house was both under 600 dollars and the house closed on Oct28th 2017