Question

Deductions:MFS

Forum|Forum|6 years ago
February 4, 2020
1 reply
0 views

I am 58, work full time. My husband is 78, retired with SS income only, no taxes withheld. If we file separately, can I take all mortgage interest and medical deductions or do I have to divide with husband? *We are only looking at MFS to compare, hopefully save on tax liability. MFJ standard deduction exceeds our itemized and we owe money.

J

JFRAHER

Here's how that works:

When you are Married filing separately you can either Both claim the standard deduction or,

Both itemize. You can break the itemized deductions any way you want.

F

FrostyPantherAuthor

So if I split the mortgage interest, taxes and medical expenses with my husband I can give him a VERY small percentage of it? There isn't a rule about how to split it? I ask because it really benefits us for me to take the deductions. If we file MFJ our tax liability is huge because we end up paying on a large portion of his Social Security since I still work full time.

X

xmasbaby0

Employee

If you file MFS --- MORE of your SS is taxable than if you file jointly.

If you were legally married at the end of 2019 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 $24,400 (+$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-separately

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**