Turbo Tax---is there a QUICK way to see if filing separately is better?

[#1 Cowboys Fan]

I just finished calculating by way of Turbo Tax. I used Married Filing Jointly---which I realize is almost always the better way to go.

I was wondering if there is a QUICK way to see what the difference would be if we filed separately.

I was hoping to NOT have to re-enter everything/almost everything. Since there is a significant disparity in our two incomes, I was hoping that giving the higher earner almost every deduction might change things favorably.

My question again----is there a Quick and EASY way to do this on Turbo Tax---or do I have to re-enter almost everything?

Pat

 

[Nancy]

Save file then copy it and then go back and change how you are filing. Then delete the one file and rename the original file back.

Nancy

 

[#1 Cowboys Fan]

Wow---is that possible??!!

If so, it sure sounds more complicated than probably what it is.

If it IS possible, can you walk me though it--
ssssslooooooooowwwllllllllllllly

Thanks,
Pat

 

[csudell]

I'd say it is unlikely that MFS would be better. That's VERY rare.

 

[Icarus]

to do a what-if scenario, open your existing return, and do a save-as, giving it an appropriate name. Now you have a copy of your return. Then you go make whatever experimental changes you want to the new file without affecting the original file. This is basically the same thing as copying the .tax2008 file to a new file in windows, then opening the new file in tt.

You will have to change filing status from mfj to mfs, and delete all the income and expenses for other spouse. Then repeat the entire thing for the other spouses return, making sure you have allocated everything properly and don't miss anything.

I don't think there's an easy way to do it, depending on your definition of "easy".

If you want a ballpark estimate, you might be able to use one of the online tax calculators.

MFJ is certainly almost always better especially when there's a disparity in the incomes. When both spouses are high wage earners, it sometimes makes sense to file separately. Also, when spouses are separating or getting a divorce, they may have to do MFS.

-David

 

[JeffW]

..I don't think there's an easy way to do it, depending on your definition of "easy"...-David

My guess is the poster would like to enter all the information on one return, then have Turbo Tax internally break it up into two separate returns, showing if that produces better results or not. Theoretically is should be possible, but I doubt TT does it.

Jeff

 

[MelBay]

TaxCut has a "What If?" feature where you can probably do that. I did lots of experimentation with whether or not to claim my college-aged kids. I'm guessing Turbo Tax doesn't have a "what if?" feature.

 

[dioxide45]

My guess is the poster would like to enter all the information on one return, then have Turbo Tax internally break it up into two separate returns, showing if that produces better results or not. Theoretically is should be possible, but I doubt TT does it.

Jeff

TT doesn't make it that easy. I always though they should have an analysis tool at the end before printing the returns that would tell you if you are better to file MFS instead of MFJ, but it doesn't provide a tool to do that.

 

[Icarus]

TaxCut has a "What If?" feature where you can probably do that. I did lots of experimentation with whether or not to claim my college-aged kids. I'm guessing Turbo Tax doesn't have a "what if?" feature.

exemptions are trivial. it's easy to do that in tt also.

-David