We filed married filing jointly for years, but for 2023 I want to file Married file Separately as we have of student loan debt and this will reduce our monthly amount

[davidpassero]

we live in Texas(a community property state withe no income tax) 2 questions 1) Is there a way to simulate our tax liability if we file MFS vs MFJ?  2) Ive always done all our taxes on TurboTax online as MFJ) can I use MFS in TurboTax online or do I need to switch TurboTax download AND do I need to pay for 2 versions (one for me and 1 for my wife?

[DoninGA]

Since you live in a community property state it is recommended that you use the TurboTax desktop CD/Download editions if you are going to file as Married Filing Separately.  The desktop editions can be used to create, complete and file as many returns as needed with no charge for the number of returns completed.  You also receive 5 free federal e-files with the desktop editions.  Plus you have direct access to all the forms, schedules and worksheet using Forms mode, if required.

TurboTax website for the 2023 desktop CD/Download editions - https://turbotax.intuit.com/personal-taxes/cd-download/

See this TurboTax support FAQ for the drawbacks when filing separately versus jointly - https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/better-married-couple-file-join...

See this TurboTax support FAQ for filing separately in community property states - https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/married-filing-separately-commu...

[davidpassero]

All my and my wife's personal and employer information is in Online Turbo Tax, can I transfer it over to TT download?

Also is there a simulation I can do to see if my tax liability would be significantly different between MFK and MFS?

[DoninGA]

You can download the 2022 tax data file so that when you start a 2023 tax return using the desktop editions the 2022 tax data will transfer to the 2023 return.

Sign onto your 2022 TurboTax online account - https://myturbotax.intuit.com/

Scroll down to the section Your tax returns & documents.  Click on the Year and Click on Download .tax file

If you are not purchasing the TurboTax desktop CD/Download editions at this time, you can use the TurboTax calculator TaxCaster to get estimates of taxes owed or tax refund based on Married Filing Separately - https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

[Mike9241]

the data that will be transferred will be from the joint 2022 return which means spouse 1 will have to edit the data to remove the data belonging to the spouse 2 spouse 2 will have the same issue the joint return data will be transferred so spouse 1 data will need to be removed. There could be other complications going from MFJ to MFS. 

[VolvoGirl]

If you filed Joint last year you should each start a brand new online account or new Desktop return and not transfer from last year.  You can not remove a spouse or switch the order of names.  See about removing a spouse is not recommended

https://ttlc.intuit.com/community/family/help/how-do-i-remove-a-former-spouse-from-my-return/00/2720...

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 on Schedule A then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!  And if you are in a Community Property state it can be complicated to figure out.

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-...

[NCperson]

@davidpassero you can use this website to simulate filing Separate vs filing Joint.  

https://www.dinkytown.net/java/1040-tax-calculator.html

it is very accurate.

Just be careful you understand what you are doing when you enter the information for filing Separate.  You must both take the standard deduction or must both itemize.  You can not 'mix and match'.  

What you have to do is see how much higher your taxes will be by filing joint and compare that to how much lower your loan repayments will be by filing Separate.  The last few I did for folks, it didn't make sense to file Separate as the additional tax didn't offset the lower loan payments.  But everyone's tax situation is different, so it may work for you!