We are a couple, but we are thinking of doing a separate file this year. Can we devise the property tax fee (50/50) and file it each filing 50% each?

[xmasbaby0 · Accepted solution]

"We are a couple"  

Do you mean you are a LEGALLY married couple?   it does make a difference.   Unless you are legally married you cannot file a joint return.

As for filing your own returns---if you are legally married then you can file married filing jointly or married filing separately.   If you file MFS then you can divide the home ownership deductions any way you agree on as long as between the two of you no more than 100% is  being claimed.

If you were legally married at the end of 2020 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 $24,800 (+$1300 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...

[miller-steve1368]

Yes, we are legal married in 2020.  We had bought the house in 2019 before we get married. So, last year for the 2019 Tax return, we devise the property fee 50% /50% and filed separately.

This year the reason why we select the separate file, because, my wife lost her job and received unemployment insurance, and she paid a lot of taxes.  We need to calculate using Tarbo tax which is better for us Joint or Separate.

Even if we are married, the "Money" control is separate and paid the utilities 50/50.  So, If my wife can receive a refund, it would be fine for me.  

[DMarkM1]

You can file separately, but I do recommend the comparison as you may find that even with the Unemployment income your joint filing might be better.  You should also take into account you have the cost to file two separate returns vice one joint.