Tax Question: Married Filing Separately

[Christine]

Been married FOREVER and always file jointly.

This year, I was thinking of filing separately because I realized I probably have about $9,000 in out-of-pocket medical expenses. If I file jointly, I will not meet the 7.5% rule (and then have any leftover). If I file seperately, I will probably be able to claim about $4,500 of those medical expenses.

So, where's the catch. By filing seperately and getting the medical deduction, where other place am I getting "screwed?"

Also, do you know if orthontist expenses are qualified medical expenses for this purpose?

 

[Chicago526]

I know medical expenses are one of the few reasons to file seperatly, but I don't know if your deductions would be high enough to overcome the higher taxes one generaly pays when filing this way.

I use Turbo Tax to file my taxes every year. If I were in your situation, I'd use the software to run the numbers both ways and see which one worked out better. If you don't have the software and don't want to purhcase it, then you can do it by hand by filling out the tax forms both ways, but that would take much longer. I don't know of any other way to find out which option is better, though.

As for the orthadonist bills, I'm not sure. I'd think so, but I'm not 100%. Try researching it on the irs web site: www.irs.gov

 

[Christine]

I know medical expenses are one of the few reasons to file seperatly, but I don't know if your deductions would be high enough to overcome the higher taxes one generaly pays when filing this way.

I use Turbo Tax to file my taxes every year. If I were in your situation, I'd use the software to run the numbers both ways and see which one worked out better. If you don't have the software and don't want to purhcase it, then you can do it by hand by filling out the tax forms both ways, but that would take much longer. I don't know of any other way to find out which option is better, though.

As for the orthadonist bills, I'm not sure. I'd think so, but I'm not 100%. Try researching it on the irs web site: www.irs.gov

I do have the TurboTax software and probalby will run it through that way--it just pains me to do it. Sometimes TurboTax can be so cumbersome that I get annoyed with it even though I couldn't live without it!!

 

[Hillbeans]

Hope you got the VA/DC tax thing worked out. Did they agree to do your W2-C for you?

 

[tar heel]

Orthodontist expenses are fine. Remember you can even include mileage driving to the ortho, docs, etc. Where you might into trouble is that you cannot include anything that was reimbursed by an FSA. Did you have $9,000 in addition to that. Ouch!

I have no idea how you decide who claims the children, etc. It is an interesting idea since you have the medical expenses.

 

[Chicago526]

I do have the TurboTax software and probalby will run it through that way--it just pains me to do it. Sometimes TurboTax can be so cumbersome that I get annoyed with it even though I couldn't live without it!!

I find working with it in small batches to be easier. I've just been entering in info as we receive it. As soon as I got my interest statment from the bank, I entered that. When I got my w-2 a week later, I entered that. Another evening I was bored so I sat down and entered in my charitable deductions.

Now, I've got everything entered in except my DH's w-2, we are still waiting for that. When I get it, it will take 2 minutes to enter, and then I'm done. I just have to double check the return and send it off. Then I just need to file state, but IL's forms are easy so that won't take long either.

If you are not in a huge hurry for a refund, I'd just work on it for a half hour each evening until you've got both sets of numbers. And really, once you have the first return done, the second should go much faster because you've already entered a lot of the data.

 

[Christine]

Hope you got the VA/DC tax thing worked out. Did they agree to do your W2-C for you?

Yes, the payroll lady decided to fix it but only after my husband paid a visit to the vice president of the company. He blew up at her and said "what do you mean you're not going to fix this?" She said "Oh, I'll fix it, I just don't know what to do and will someone show me what form to use?" This from a 15 year payroll processor!!

They also reversed out the entire month of January's payments to D.C.

We still haven't seen the corrected W-2. I will still have to file both D.C. and VA taxes.

 

[Christine]

Orthodontist expenses are fine. Remember you can even include mileage driving to the ortho, docs, etc. Where you might into trouble is that you cannot include anything that was reimbursed by an FSA. Did you have $9,000 in addition to that. Ouch!

I have no idea how you decide who claims the children, etc. It is an interesting idea since you have the medical expenses.

Oooohhh...good point. I did have an medical flex account and I put $7,000 into it. I used every bit of that and then some. Guess that answers the questions. Shoot.