A tax question [Filing status - Which is better]
Posted: Thu Feb 07, 2013 1:53 pm
In which situations does it make sense to file married with separate returns rather than a joint return?
Thanks.
jte
Thanks.
jte
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I suggest you talk to someone else about tax matters other than your coworkers. I'm afraid they're wrong. It is only in unusual circumstances where MFS makes sense.FordBiggs wrote:Just be careful though, I heard that once you file as Married Joint, you can never go back to filing as Married Separate.I'm not yet married so I don't have first hand experience with this but this is what was told to me so just be careful. Most of my coworkers who are married suggest to file Married separate because of this reason but I'm sure it's subjective based on your unique situation.Code: Select all
As has been pointed out, that is incorrect. What probably got distorted somewhere along the way in what the OP heard is the rule that after a return has been filed with Married Filing Jointly for a given year, the MFJ return cannot be AMENDED to Married Filing Separately status after the due date for the original return. Returns originally filed as MFS can be amended to MFJ.FordBiggs wrote:Just be careful though, I heard that once you file as Married Joint, you can never go back to filing as Married Separate.
I'm not yet married so I don't have first hand experience with this but this is what was told to me so just be careful. Most of my coworkers who are married suggest to file Married separate because of this reason but I'm sure it's subjective based on your unique situation.
If your spouse is going to commit tax fraud, you may want to file separately.jtelwood wrote:In which situations does it make sense to file married with separate returns rather than a joint return?
Thanks.
jte
When you live in Ohio. Sometimes.jtelwood wrote:In which situations does it make sense to file married with separate returns rather than a joint return?
I didn't know this. My parents live in Ohio and I'm trying to convince them to file separately next year so my mom can get a full savers credit at 50% for a back door Roth.interplanetjanet wrote:When you live in Ohio. Sometimes.jtelwood wrote:In which situations does it make sense to file married with separate returns rather than a joint return?
Ohio is (somewhat) unique in that it penalizes MFS filers much less than most states do or the IRS does, but it requires the same filing status to be used at the state level as is used with the IRS. It's fairly common for tax preparers in Ohio to have to run things both ways to see if MFS can be beneficial.
In most of the rest of the USA this is less of an issue, and MFS is used more for when one spouse does not want to be on the hook for the other's taxes or wants to avoid a garnishment that the other spouse would be subject to (this is complex, also see the IRS' "injured spouse" filing provisions).
mlipps wrote:I didn't know this. My parents live in Ohio and I'm trying to convince them to file separately next year so my mom can get a full savers credit at 50% for a back door Roth.interplanetjanet wrote:When you live in Ohio. Sometimes.jtelwood wrote:In which situations does it make sense to file married with separate returns rather than a joint return?
Ohio is (somewhat) unique in that it penalizes MFS filers much less than most states do or the IRS does, but it requires the same filing status to be used at the state level as is used with the IRS. It's fairly common for tax preparers in Ohio to have to run things both ways to see if MFS can be beneficial.
In most of the rest of the USA this is less of an issue, and MFS is used more for when one spouse does not want to be on the hook for the other's taxes or wants to avoid a garnishment that the other spouse would be subject to (this is complex, also see the IRS' "injured spouse" filing provisions).
theduke wrote:mlipps wrote:I didn't know this. My parents live in Ohio and I'm trying to convince them to file separately next year so my mom can get a full savers credit at 50% for a back door Roth.interplanetjanet wrote:When you live in Ohio. Sometimes.jtelwood wrote:In which situations does it make sense to file married with separate returns rather than a joint return?
Ohio is (somewhat) unique in that it penalizes MFS filers much less than most states do or the IRS does, but it requires the same filing status to be used at the state level as is used with the IRS. It's fairly common for tax preparers in Ohio to have to run things both ways to see if MFS can be beneficial.
In most of the rest of the USA this is less of an issue, and MFS is used more for when one spouse does not want to be on the hook for the other's taxes or wants to avoid a garnishment that the other spouse would be subject to (this is complex, also see the IRS' "injured spouse" filing provisions).
Before you convince your parents to file separately on their federal return, you need to read Pub 17, page 21 Special Rules for filing MFS.
http://www.irs.gov/pub/irs-pdf/p17.pdf
Oops. Got it. I apologize to the OP for the incorrect information.MBMiner wrote:I suggest you talk to someone else about tax matters other than your coworkers. I'm afraid they're wrong. It is only in unusual circumstances where MFS makes sense.
Bruce
I see. Thanks for the clarification. That makes sense on how my coworkers probably misinterpreted that information.HouseStark wrote:As has been pointed out, that is incorrect. What probably got distorted somewhere along the way in what the OP heard is the rule that after a return has been filed with Married Filing Jointly for a given year, the MFJ return cannot be AMENDED to Married Filing Separately status after the due date for the original return. Returns originally filed as MFS can be amended to MFJ.
There is no rule against switching between MFJ and MFS in different years and it would rarely make sense.
And again, don't go to your coworkers for tax advice. I might, but I work at a CPA firm.