Rental loss for married couple filing separately

Forum|Forum|2 years ago
October 3, 2023
4 replies
0 views

Please advise where can I find the box for "married filing separate-live apart for entire year".

xmasbaby0

Employee

Not sure where you are looking for a "box" to enter that in. If you are choosing to file married filing separately, then you each have to file your own tax return. In My Info, when it asks if you were married in 2022, you say yes. Next it will ask if you want to file together with your spouse. Say NO. Your filing status will then be married filing separately. Your spouse will have to do the same thing on their own return. Each of you will have to enter some information about each other, however.

If I am filing a separate return why do I have to list my spouse’s information on my return?

Even if you file separate returns (the worst way to file) you each have to list each other's SSN's and some other information on your own tax return. The IRS can then cross check to make sure you are not "double dipping" for itemized deductions, dependents, etc.

If you are in a community property state, there is more information that will be needed.

Community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://turbotax.intuit.com/tax-tips/marriage/five-tax-tips-for-community-property-states/L4jG7cq7Z

If you were legally married at the end of 2022 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 $25,900 (+$1400 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.**

rjs

Employee

After you answer No to whether you want to file together with your spouse, it will ask for your spouse's first name. The next screen after that has a few checkboxes and says "Select Any That Apply." One of the boxes says that your spouse did not live with you at any time between July 1 and December 31, 2022. When you check that box, another box will appear that says you lived apart from your spouse for all of 2022. See the screen shot below.

Mike9241

this is solely for head of household filing status if you have a qualifying dependent.

married filing separately and living apart for the whole year limits you to a $75,000 loss from real estate with active participation. line 5 of form 8582. you can go to the IRS website and read the instruction for line 5 of that form

Critter-3

Actually that question/answer will also come into play if you have SS benefits as well.

Once again if the user goes slow and reads all the words on the screens in the order the screens are presented they will find everything they want/need. When I worked for TT as a tax expert 90% of the calls were from folks who did not pay attention to the screen instructions and/or skipped about in the program.

NCPERSON1

@2go if you are legally married, you ALWAYS have the choice to file JOINT or SEPARATE. it has nothing to do with whether you are living apart or together. it is simply a choice you have.

96% of married couples file JOINT as the laws motivate that behavior. As long as the two of you are willing to sign the tax return together, filing JOINT makes the most FINANCIAL sense.

can I ask why are you filing SEPARATE? is it emotionally drivem or finanacially driven? WHat is the financial reason?

2goAuthor

If file joint and can take the rental loss, vs file separate not able to take the loss, the reason is financial. After getting answers from the previous posters, now I know how to file " separate but live apart for entire year", thank you.

NCPERSON1

@2go hmmmm. from that response, seems like you want to file JOINT...... it is unlikely that filing SEPARATE yields a better financial outcome. I have never seen that occur (other than related to student loan repayment situations). Suggest working the tax return both ways to prove it to yourself - remember 96% of married couples file JOINT. there is a reason for that!

You can file JOINT, even if you lived apart for the entire year. JOINT vs SEPARATE has to do with whether both of you will sign the same tax return or not...not whether you jointly lived under the same roof or lived under separate roofs.