Married Filing Joint to Single Status

[GodFather]

For 2023 tax year, I had a couple who filed MFJ but were in the process of divorcing. During 2024, the divorce was finalized.  Both want to return and have me complete their tax returns for 2024.  I don't see an issue with it but reaching out for any opinions.  Is there any downside that maybe I'm not seeing by doing this?

Also...I guess there is no easy way for ProSeries to transition a return from MFJ to Single?  I created a brand-new return for the spouse, but was just wondering if there are any resources that would have allowed this?

[rcooley25]

Assuming that they lived together or part of 2023 n way can they filed as single. Their only choice for 2023 since they were legally mariied for that year is filing jointly which they have done or married filing separately.  Filing separateley  would most likely prove to be terrible.

[dkh]

I've worked with divorced couples.  It can work out just fine, as long as they aren't fighting over who claims dependents.  My experience has been both will return for first year or two then one usually decides to go elsewhere.  I make sure there is no chance of them being at my office on the same day.

Your guess is right, no magical way to transition the spouse to a new return.

I also wish there was a way to check a box on parent's return to create a return for a dependent.  Maybe after the form Ironman has been wishing for becomes available.

[IRonMaN]

Divorces are good for business - you now have two returns instead of one.😉

The professional version has the ability to compare joint filing vs filing separately.  As part of that function you have the ability to split a joint return into two returns.

[dkh]

@IRonMaN   where is the option to split the joint return into two returns ?   I'm looking at the MFJ vs MFS Worksheet....don't see it

[IRonMaN]

I’m not at my computer at the moment so I’ll check in a bit and get back to you.

[GodFather]

2023 was filed MFJ.  Both are returning for 2024 returns and the divorce was finalized in 2024.  One will be filing as single and the other as HOH.  

[PATAX]

@GodFather There are flowcharts, etc in Quickfinder, Taxbook, etc for filing status and dependents. If they are amicable, then you may be able to prepare both. If they are not amicable, then you may want to consider not preparing one or both of their returns.

[IRonMaN]

@dkh  - click "file" > split mfj return.

[BobKamman]

@rcooley25 That's a good answer to a question that was not asked.  

[IRonMaN]

All I can say is - Fireball.

[BobKamman]

@IRonMaN  Alcohol is not funny.  Dementia, even less so.  

Slava Europe!

[IRonMaN]

Anything has the possibility of being funny as long as you aren't trying to be mean or insulting to a person or group of people.  Attempting to insult people is never funny but I have seen plenty of those kinds of posts in this forum.  So I'll stick with trying to be funny and trying not to insult folks.  For anybody that is insulted by my comments, I will offer my apology now.  But that doesn't mean the Fireball jokes will end anytime soon.

[Just-Lisa-Now-]

If you had the TSJ indicators on in the MFJ return, you could split it into 2 MFS returns and then change them to Single.  Moves the bulk over everything.

[GodFather]

Yes..TSJ is critical in allowing the single returns to populate correctly. 

[rcooley25]

Please dont stop with the fireball jokes. Fireball is what makes life worth kiddding.

I can realise what you are going thru.

The last year that I was an active preparer (2023 filing season) I almost got kicked off the system for making jokes that someone did not know how to take.

[IRonMaN]

As Patrick Henry once said - "give me Fireball jokes or give me death."

Well maybe he didn't say exactly that, but if he was alive today, I'm almost positive he would have said that.

[BobKamman]

What's not funny is a totally off-the-wall answer, on a Saturday morning, to an easy tax question.  We're all one big happy family here, but sometimes one of the relatives should suggest an intervention.