Where do I find comparison of filing married jointly versus married separately?

[hoekzema619]

After changing filing status, do you have to delete spouse w-2 information?

[xmasbaby0]

You cannot just change the filing status and expect an accurate comparison between MFS and MFJ.

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.

If you were legally married at the end of 2018 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 $24,000 (+$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...

[Anonymous]

Any way to compare state refund  MFJ to MFS on desktop version ?

[DMarkM1]

As you go through the process of creating the mock returns in the desktop version, the state returns, which as noted above you have to purchase an additional one for the MFS returns, will update as well.   

[chingchen58]

@xmasbaby0  

I live in Ohio and don't have AMT concern, the major savings by filing separately is in state income tax, while federal tax are identical if my wife and my taxable income fall in the same tax bracket.

I use CD version of TT. For me to do the comparison, I typically do MFJ first, save the tax file. Using save-as twice to save two additional tax files. Then, modify these two files by modifying and deleting the extra data for her and my MFS returns. I thought by doing it this way, I don't need to enter the same data twice. However, some years it gave me trouble, such as Smart Check finding errors in 8889-S HSA, and the error message was confusing and I couldn't easily fix it; not sure if I had missed deleting some extra data or was it just TT program hiccups. So, sometimes, I wonder if it was just easier to start my MFS returns from scratch.

You mentioned the CD version having a “what if” feature that allows comparisons”.  Does TT has a build-in somewhat automatic process, allowing easier to do what-if comparison than the "manually" process I was doing? Could you please elaborate on that? Thank you.

[shmc]

In the desktop version, use the What-If worksheet. Go to Open Form and type What-If in the search box.