Married filing jointly Versus Married Filing Separateley

[rcooley25]

There has been some discusion today about married filing jointly versus married separate. I am confused by some  of the answers especially those that say there are some who would benefit by filing separately. I have been in this buisiness 53 years and I have never seen a case where separate returns were beneficial. I have tries. Every time I have tried it just does not work. One party might make out like a trooper but the other one gets hosed so bad it wipes out the gain the other partner got and then some.

[IRonMaN]

It doesn’t happen often but every now and then it is beneficial.  For 2020 it came in handy a few times for folks with unemployment benefits.

[sewcpa]

I think that the reason there are numerous answers is that community property states and common-law states get different correct answers for the same data. Different kinds of income or deductions or credits may not get good treatment if IRS cannot "see" the full family income picture. 

Here in TX it is rare for MFS to be beneficial. If the clients can talk to each other they normally file together and even if not talking (in divorce) they may still find a way to file together. I am sure that you have seen that in your years in the business.

[dd4vols]

been in practice about 30 yrs.  haven't had many, but had one yesterday, When clients showed up today, I told them they were very rare,  I've probably had maybe 5 in my long career.

[rcooley25]

When I said that not once have I seen it work I was not completely correct. I have one client that I file separate income tax returns on and it has nothing to do with income taxes but rather the amount of money  the wife would have to pay back on her college tuition.  Filing separately her and her  husband paid alot more in income taxes but it was a drop in the bucket to what the addional amount she would have had to pay torwards her  government college tuition had she and her husband filed joint returns.

[IRonMaN]

But then again, if you never try looking to see if it will work, it never will 😉

[rcooley25]

I realise what you are saying but I have looked so many times over my 53 years in the business with no change I have given up looking along time ago. Dont get me wrong. I am not getting lazy. I would love to be able to charge them for preparing 2 income tax returns instead of 1.

[rcooley25]

Thats one more than I have seen in 53 Years.

[garman22]

I have seen a few over the years but not very often. I've seen it more these past two years re: EIP and these ACTC's. Im not really in favor of double dipping but in some cases it does work. 

Most of my MFS' came prior to Trump's changes. Mainly I'd see them with Medical Expenses and Misc Expenses. Especially when there was a disparity in income levels and the bulk of those expenses came with the one with the lower income. 

[Accountant-Man]

That's why some people have to file separately, to keep the loan repayments low. I have two.

Some people do not realize that in MFS, if one spouse itemizes the other MUST itemize, which is not as good as Standard Deduction in many cases.

That's how they cheat.

[rcooley25]

Now you dont really think people want to cheat on their income tax returns do you? (haha)