When I change status from married filing jointly to filing separately, the refund numbers become nonsense

[rphdenis]

Married filing jointly: federal refund of $4,520, state refund of $496. Married filing separately: federal owed $576, state refund of $28,000 (more than we paid...). What is the problem with the software?

[DoninGA · Accepted solution]

If you are using the TurboTax online editions and want to see the difference based on the Filing Status, you will need to create a new account for the MFS.   

Actually two more accounts if both of you are reporting income.  One MFS account for you and one MFS account for your spouse.  For the new account you will also need to create a new User ID and add a new email address.

Leave your original account as MFJ.

Go to this website and click on Sign up to create a new account - https://turbotax.intuit.com/personal-taxes/online/file-your-own-taxes/

[xmasbaby0 · Accepted solution]

Did you prepare TWO separate returns -- one for each spouse---when you tried to compare MFJ to MFS?

It is not easy to compare MFJ to MFS using online TT but you can do it.  Since you only get one return for each account and user ID, you have to use 3 accounts and user ID’s—one for MFJ and two for each of the MFS returns.  Compare, choose, and file—and pay—accordingly.

It is much easier to do this comparison using the desktop version of TT installed from a CD or downloaded to your own computer.  You pay once for the software and you can prepare multiple returns easily, and it has a “what if” feature that allows comparisons.

WHAT IF…?

If you are using Desktop software:

• With your return open, click Forms in the upper-right-hand corner
• Click Open Form
• In the Search area, type the word what. You should see the What If Worksheet listed, click to open it.

[ThomasM125]

It is not unusual to owe significantly more when filing separately versus married-joint. This is mainly due to a less advantageous tax rate schedule when filing separately. Also, there are many credits that you may lose when you file separately.

The large state refund may be the result of not entering things properly in the federal program.

[rphdenis]

Thank you very much for taking the time to respond. You would think after all these years that the online version would be able to handle both scenarios of MFJ and MFS, but it's not. So, I'll follow your advice.

[rphdenis]

Thank you very much for your reply. I'm considering downloading the desktop version.