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el2
New Member

Turbo tax calculating higher tax due when my status is married filling separately versus single. is this to be expected ?

 
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Opus 17
Level 15

Turbo tax calculating higher tax due when my status is married filling separately versus single. is this to be expected ?

Yes.  MFS is a crummy status, the rates are higher, and many deductions and credits are reduced or disallowed.  Is there a reason you don't want to file jointly with your spouse? That is generally a more favorable status.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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3 Replies
Opus 17
Level 15

Turbo tax calculating higher tax due when my status is married filling separately versus single. is this to be expected ?

Yes.  MFS is a crummy status, the rates are higher, and many deductions and credits are reduced or disallowed.  Is there a reason you don't want to file jointly with your spouse? That is generally a more favorable status.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
el2
New Member

Turbo tax calculating higher tax due when my status is married filling separately versus single. is this to be expected ?

Thanks. yes we have several reasons for not taking the joint route. just did comparison and the diff appears to come for schedule e, when mfs losses are not deducted from total income, when single they are.  do you have any insights regarding this ?
jerry2000
Alumni

Turbo tax calculating higher tax due when my status is married filling separately versus single. is this to be expected ?

The Married Filing Separately filing status is very different than the Single filing status. There are a number of severe restrictions on deductions and credits, and on the amount of IRA contributions that you can deduct, especially if you live together with your spouse.
You can not take the EIC,
You can not take the credit for Child and Dependent Care, in most cases,
You can not take the Education credits/deductions, and there are many other restrictions.
 If either of you receive Social Security benefits and you live with your spouse, more of the SS benefit will be taxable, and the person receiving it will have to include the SS benefit in their gross income when determining whether they have to file. If one of you itemizes deductions, the other must also itemize even if they have nothing to itemize.

Before you decide, you should carefully read the restrictions that go with MFS in  IRS Pub. 501, at this link:
http://www.irs.gov/pub/irs-pdf/p501.pdf

You should carefully read the limits on IRA deductions in IRS Pub. 590-A at this link:
http://www.irs.gov/pub/irs-pdf/p590a.pdf

In addition, if you live in a Community Property state, there are special rules you must follow for reporting income and expense. For further information on that, see IRS Pub. 555, at this link:
http://www.irs.gov/pub/irs-pdf/p555.pdf

and/or the Turbotax FAQ at this link:
https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states
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