Which version of Turbotax? A joint or separate filling for last year's marriage?

[sheolee]

I was married last year. My husband has his own W2 filed in both California and Washington since he relocated from California to Washington so he will need to fill federal taxes for both CA and WA, and state taxes for CA. What's more, we bought a house in WA last year. What is the tax implication we need to consider in this aspect? BTW, his base salary is higher than me so we might consider a joint filling if it can get into a lower tax bracket. With all said, what version of Turbotax do we need to use to cover these aspects and make the best decision?

[KrisD15]

TurboTax Deluxe will handle W-2 income and Form 1098. HERE is a link that compares the versions.

Now that you are a Homeowner, you may have Form 1098.  Form 1098 reports Home Mortgage Interest and might help lower your taxable income if you itemize deductions.

The Standard Deduction for Married Filing Separately is half that of Married Filing Jointly, and the spouse with the higher income will pay a higher rate on that income if you file separately, so your combined tax rate may not change much regardless if you choose to file jointly or separately; however, filing Married Filing Jointly is almost always the better option than filing Married Filing Separately. Some credits can be lost when filing Married Filing Separately and credits can lower your tax liability.

Choosing Online or Desktop is a personal preference. Taxpayers that like to go into different tax forms seem to prefer Desktop, where those that like the convivence of access prefer Online. 

State returns can be added and filed using any TurboTax product. 

[AmyC]

1. The download version allows you to create up to 5 returns for e-filing. The online version requires you to each have an account. 

2. MFS can be very harsh. If you have rental income, retirement funds, or kids, I would really advise you look into how much you could lose. 

 Very few people file the federal return as MFS. Please follow the IRS link to  help you decide which is best for you.  IRS quick filing status quiz for your federal return.

As for the states, that can make a difference.

CA - same as federal Filing status | FTB.ca.gov

WA - no state tax

3. The house will offer mortgage interest and property tax, if you itemize deductions. You may have points paid. If you file separately, you must both itemize or both take the standard deduction.

See  Is it better for a married couple to file jointly or separately?

4. I would recommend the download version because you can enter one of you. Save it with name. Then enter the spouse, save it MFJ. Enter the spouse as a new return- for the third return. You have three files to work from and play back and forth to see how the numbers move. The deluxe version handles the Sch A, if you itemize.

If you have something that does require an upgrade, one button click let's you upgrade instantly and continue on with your return. You can purchase it here.