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Filing jointly or separate - advice needed

Forum|Forum|4 years ago
April 15, 2021
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I made $175K and my wife $35K in 2020. We are retired and started to pay for our Medicare Premium. We have no dependents. We file jointly in the past and took the Standard Deduction. The end result, non of us received a stimulus payments. Our joint AGI also impacted her to pay for a higher Medicare Premium and Part D this year. If we file separate, she will not have to pay an increased Medicare Premium next year.

I paid the real estate fees and mortgages. Can my wife claimed the mortgage payment which is under my name and not hers ifwe have to choice Itemized Deduction?

Will Turbo Tax help to run separate filing status easily without having to input personal data again and again? Is TT Premium Version worth upgrading?

Best answer by VolvoGirl

You can both take the Standard Deduction or Itemize. But you both have to do the same way.

You just can't change your account. To compare them you have to use 3 accounts and returns. One for Joint and 1 each for MFS.

To compare Joint to MFS. If you are using the Online version, do NOT change anything on your return. You would have to start with a new account and do a test return. You don't have to pay unless you want to print it out. So you might need 3 accounts, one for Joint and two MFS, one for each spouse.

How to start another return in the Online version
https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-start-another-return-in-turbotax-online/00/25596

It would be better to use the Desktop CD/Download program. It can do unlimited returns and has a What If worksheet to compare them and many other advantages over the online version. You can move your current online return to the Desktop program without paying for Online.

You can buy the Desktop CD/Download program here
https://turbotax.intuit.com/personal-taxes/cd-download

Unless you have a specific reason to file separate returns,

It is usually better to file Joint. Joint has the lowest tax rates and the highest Standard Deduction. And if you are in a Community Property state MFS gets tricky to figure out. 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 then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!

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-separately/00/25590

VolvoGirlAnswer

You can both take the Standard Deduction or Itemize. But you both have to do the same way.

You just can't change your account. To compare them you have to use 3 accounts and returns. One for Joint and 1 each for MFS.

To compare Joint to MFS. If you are using the Online version, do NOT change anything on your return. You would have to start with a new account and do a test return. You don't have to pay unless you want to print it out. So you might need 3 accounts, one for Joint and two MFS, one for each spouse.

How to start another return in the Online version
https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-start-another-return-in-turbotax-online/00/25596

It would be better to use the Desktop CD/Download program. It can do unlimited returns and has a What If worksheet to compare them and many other advantages over the online version. You can move your current online return to the Desktop program without paying for Online.

You can buy the Desktop CD/Download program here
https://turbotax.intuit.com/personal-taxes/cd-download

Unless you have a specific reason to file separate returns,

It is usually better to file Joint. Joint has the lowest tax rates and the highest Standard Deduction. And if you are in a Community Property state MFS gets tricky to figure out. 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 then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!

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-separately/00/25590

S

SLYKTAXAuthor

Thanks. I used a Desktop version. Hopefully, I can run three files without in putting the same data three times.

VolvoGirl

You probably will have to fill out 3 new returns. The 2 MFS returns will have different data to enter. What same data do you need to enter on all 3 returns? Well you could fill out 1 of the MFS returns first. Then copy it, go up to FILE - Save As and give it another name and then change it to Joint and add the other spouse to it. Then you have to start a new blank return to do the other spouse's MFS return.