I have purchased a second home, should I upgrade to turbo tax deluxe? Also, I am separated from my husband, but we are still leagally married, how should I file?

[AmyT · Accepted solution]

You may need to upgrade your TurboTax software.

If you plan to itemize your deductions to report the mortgage interest (and other potential deductions - see https://www.irs.gov/pub/irs-pdf/i1040sca.pdf for a list of itemized deductions) paid on your homes, you will need TurboTax Deluxe (or higher).

If you are considered married (definition below) as of December 31, you are required to file either a Married filing joint or a Married filing separate income tax return.

NOTE:  see IRS publication 501 (https://www.irs.gov/pub/irs-pdf/p501.pdf) for more details

Considered married. You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. 

1. You are married and living together. 
2. You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. 
3. You are married and living apart but not legally separated under a decree of divorce or separate maintenance. 
4. You are separated under an interlocutory (not final) decree of divorce. 

Considered Unmarried: To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. You are considered unmarried on the last day of the tax year if you meet all the following tests. 

1. You file a separate return. A separate return includes a return claiming married filing separately, single, or head of household filing status. 
2. You paid more than half the cost of keeping up your home for the tax year. 
3. Your spouse didn't live in your home during the last 6 months of the tax year. Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. See Temporary absences, later. 
4. Your home was the main home of your child, stepchild, or foster child for more than half the year. (See Home of qualifying person, later, for rules applying to a child's birth, death, or temporary absence during the year.) 
5. You must be able to claim an exemption for the child. However, you meet this test if you can't claim the exemption only because the noncustodial parent can claim the child using the rules described later in Children of divorced or separated parents (or parents who live apart) under Qualifying Child or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative. The general rules for claiming an exemption for a dependent are explained later under Exemptions for Dependents

While you will generally pay less overall income tax if you file a joint return, your circumstances may make it preferable to file separately.