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Old 02-21-2011, 03:51 PM
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Married Filing Sperately v. Jointly

My wife and I typically file jointly, however this year due to her change in employment, and some consulting/freelancing work she did, about half of her income was as a independent contractor and in the form of 1099s. My situation is very straightforward, and without any of the the deduction available to me, I would still be recieving a refund.
Does it make any since to file seperately, and have her filing use all of the available deductions that we have jointly (mortgage interest, home energy credit, etc), as well as her itemized deductions from the work associated with the 1099s? Are those deduction more benficial when concentrated into a single filing rather than a joint filing? Any help is very much appreciated.



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Old 02-22-2011, 05:27 AM
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“Does it make any since to file seperately, and have her filing use all of the available deductions that we have jointly (mortgage interest, home energy credit, etc), as well as her itemized deductions from the work associated with the 1099s?”---->Not really; as married tax filers, you can choose between filing a married filing jointly, MFJ, return or a separate tax return, MFS. The MFS filing status, as you know, provides fewer tax benefits than MFJ, but you will need to weigh the pros and cons and decide for yourselves which is the best filing status. You and your spouse can MFS tax returns. The MFS filing status is the least beneficial of all the filing statuses because MFS taxpayers are not eligible to claim child and dependent care credit or even earned income credit or etc. Also, MFS taxpayers also have lower income phase-out ranges for the IRA deduction. MFS taxpayers must both claim the standard deduction or must both itemize their deductions. In other words, your spouse cannot claim the standard deduction if you are itemizing or vice versa. However, there is a potential tax advantage to filing MFS when one spouse has significant medical expenses or miscellaneous itemized deductions; By filing as MFS, you have a better chance of meeting the requirements to claim these deductions. For example: medical bills must exceed 7.5% of your income before you can deducted them. However, in most cases, married filing jointly offers the most tax savings, especially when the spouses have different income levels.
“ Are those deduction more benficial when concentrated into a single filing rather than a joint filing?”--->As said above, it depends.



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