Deduction for Married Filing Separately

[FRANZ]

Is there a penalty If the couple are NOT using the same deduction (standard/itemized)? The spouse has gambling winnings of $40k and needs to deduct her losses.

Thank you so much.

[itonewbie]

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@FRANZ wrote:

Is there a penalty If the couple are NOT using the same deduction (standard/itemized)?

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Why would this even be relevant?  As tax professionals, we all have a duty to prepare complete and accurate returns, whether or not we are credentialed.

But since you asked the question, for a start, you are looking at the standard deduction being disallowed under §63(c)(6).  With that will come P&I for underpayment, at the very least, unless it's caught when the return is processed and there is already sufficient withholding/ES-tax payments to cover the balance due.

[taxiowa]

I don't know where you come from, but if I speed and don't get caught; there is no penalty.

[itonewbie]

The OP may not be so lucky, with the IRS pointing the speed camera at both their SSN's to check whether they're trying to pull a fast one, moving at different paces.

[rcooley25]

I think some of the other responses have overlooked something. When married filing separately the law is very clear. If one itemizes then the other must itemised. It is the same regarding standatd deduction. That is why on most occasions you do not want to filed separate returns because it results in higher income taxes.

[itonewbie]

@rcooley25 Nope, we didn't miss anything.  The OP's question is clear that one would be taking I/D and the other S/D.  That's why the focus is on the disallowance of S/D.

[taxes96786]

It isn't "same deductions", it's if one itemizes the other has to itemize.