How to split a Married Filing Jointly return in Lacerte

Before you start:

If the taxpayer and spouse are in a community property state

Before splitting a joint return, if the taxpayer and spouse are in a community property state, make sure that the global option is set for community property. 

To split the joint return:

1. Go to Screen 1, Client Information.
2. Locate the Filing Status section.
3. Select Married Filing Jointly from the Filing Status dropdown menu.
4. Check the box, MFJ/MFS Comparison.
5. Select the Forms tab.
6. Review the MFJ/MFS Comparison worksheet.
7. Select Tools.
8. Select Split Joint Return.
9. Select the boxes next to the clients for whom you want to create separate returns for.
10. Enter a client number or use the client numbers assigned by Lacerte.
11. Select OK to split the return. After selecting OK, pay attention to the Split MFJ Report for any diagnostics listed.

To set the Community Property State option:

1. From the Settings menu, go to Options and select the Tax Return tab.
2. Scroll down to the Federal Tax Option section.
3. Locate the Community Property State option (5th option from the bottom).
4. Select Yes from the dropdown menu.

The community property state must also be indicated as the resident state on Screen 1, Client Information.

Can I merge two returns with Single filing status or a MFS into one MFJ return?

Lacerte does not support combining two existing individual returns into a single Married Filing Jointly return. You must select one of the returns to be your new Taxpayer then add the other person's information.