question about taxes--married filing separatly with itemized deductions?

[meriface11]

DH and i usually file jointly, but he was not eligible for and employer sponsored retirement plan this year, so we want to write off the $5K contribution we made to his IRA. My understanding is that we need to file separately to do that since i did participate in an employer sponsored retirement plan. we itemize--does anyone with experience doing this know if i just split up our household deductions (2 separate mortgage interest, property taxes on the house and cars, and charitable donations?), or do i have to list them all with one of us? is there anything else tricky i need to know about filing separately that i am not thinking about?

 

[Juliee8]

I had a friend that filed married filing seperate last year and it really screwed things up. I know that she said that they don't allow you to take certains credits when you ile seperate. Also if one of you itemizes then the other one has to also itemize. I would contact a tax preparer and check the specifics out with them to make sure that you would benefit from filing seperate.

 

[Claire&TheBoys]

The software we use at the CPA firm where I work allows us to run the numbers both ways and see which way is more beneficial for the taxpayers. The previous poster is correct; you can't take some deductions and get certain credits. Also, if one person itemizes, they both must, so that may increase one partner's tax due. The itemizations would be split up depending on who's SSN is first on the mortgage, etc. I think you should consult a tax professional to see what your best course of action is.

 

[imsayin]

You don't need to file separate for your situation.

 

[Joel110]

Your employer sponsored retirement plan does not exclude your husband from contributing into a deductible IRA. He can deduct the contribution if you file jointly as long as he did not have an employer sponsored plan and your combined earned incomes exceed the amount of the IRA deposit.

Be careful if you file separately. Filing separately can actually void the deduction on his IRA contribution if his income exceeds $10,000.

 

[leight]

If you are just trying to take the deduction for his ira contribution and for no other reason, then you don't have to file separately. His w-2 should indicate that there was no opp for a retirement plan; yours will say you had access to one. That is how the IRS holds you accountable. Most software will take you thru the scenarios to show you and ask the right questions.

 

[deva]

The itemizations would be split up depending on who's SSN is first on the mortgage, etc.

This is incorrect.

I think you should consult a tax professional to see what your best course of action is.

There are a lot of considerations that go into MFJ vs MFS. You also need to consider state tax implications. If you are savvy and can follow the rules in the publications/on the forms etc. you can run them both ways yourself and then pick whatever has lowest combined Fed and State