(MFJ) Husband or Wife considered "taxpayer" for data entry?

[MariaR08]

Never thought of this... but when processing a MFJ return, who is considered the "taxpayer" and who is considered the "spouse"?

Is it automatically the Husband who is the "taxpayer"? Does it make a difference? I usually default the Husband as the taxpayer and the Wife as the spouse... but someone please provide some insight and/or comments on this??

Thanks!

~Maria

[S T]

Yes

I believe that to be true,

whomever, is listed first is the taxpayer and secondary is the spouse.

Most all of mine are husband, and then spouse secondary. For reasons unknown, I have a few wives that are listed first and the husband is second.

Sandy

[Bucky]

Does not matter.

[MariaR08]

Hi Sally!

So we can basically just choose who to designate as the taxpayer and spouse?

So... for example, husband and wife, nothing special, standard deductions, wife makes more than the husband... would you enter the wife as the "taxpayer" or the husband?

My best guess would be to list the higher earning spouse as the "taxpayer" and the lower earning spouse as the "spouse". What do you think?

[Zee]

I'm glad you asked this question. I've alway's used the husband as the taxpayer and wife as the spouse using Drake software.

This year, the husband wanted to do a spousal IRA. The wife is the primary wage earner and is a participant in a pension plan. Drake's SW continued to indicate the $5000 deductible spousal IRA should be changed to a non-deductible IRA because the husband participated in a pension. He doesn't, and their was no income exclusion from the IRA rules. Although the SW indicated it was a Drake error code, it prevented e-filing.

As such, I had to re-do the entire return with the wife as the taxpayer and the husband as the spouse. Go figure. I never anticipated this type of problem in Drake and their tech support seemed to think it "made good sense". Obviously, I don't agree.

[S T]

Never gave it a thought either

Unless what Zee points out is an obstacle due to software,

I don't know what difference it makes whether you list the husband or the wife as the first named on the return.

Sandy

[Zee]

Unless what Zee points out is an obstacle due to software,

I don't know what difference it makes whether you list the husband or the wife as the first named on the return.

Sandy

Yes, it seems to be a Drake SW error. It doesn't make sense that a spousal IRA must be for the person listed as a spouse to be deductible, rather than the taxpayer on the input screen. I don't think they plan on fixing the SW error and didn't seem concerned.

[erchess]

I don't know if this is true

When I first started in the business I was told that for fastest handling by the taxing agencies list the couple in the same order year after year because in the IRS Computers the return is identified by the SSN of the Primary and any time there is no record of a return by that number the previous year that return gets extra scrutiny. I don't know that it was ever true and I certainly don't know that it is still true.

[David1980]

When I first started in the business I was told that for fastest handling by the taxing agencies list the couple in the same order year after year because in the IRS Computers the return is identified by the SSN of the Primary and any time there is no record of a return by that number the previous year that return gets extra scrutiny. I don't know that it was ever true and I certainly don't know that it is still true.

True or not, consistency is good. It comes into play when for example you're requesting transcripts and need to know which was the first SSN. If you're randomly changing it year to year you might have to guess as to who you put first that particular year.

What I do is keep it the same as last year. If it's the couples first year I give them the choice. Most go with husband first but every now and then they'll choose wife first.

If I needed to swap them to work around a software issue or an efile issue I probably would, but haven't had to yet.

[Bucky]

Zee

I also use Drake and have come across the IRA error sheet also. No reason to change everything. Just ignore. It is just a Drake warning won't affect efile etc. Funny they won't correct it. They are usually really good at making sure the software works correctly.

[thomtax]

I would like to point out one thing for consideration that seems to be forgotten in the rush of things. This is also constantly pointed out by the IRS. It is the taxpayer's return - not the tax preparer's return. Unless there is a valid reason not to, it is the taxpayer's choice.

I usually put the one with the highest income first, in our area often the husband. But in some families this can be a major source of contention (as it seems everything in society is today) and I do not feel it is my place to add to the problem. So I tell them my usual procedure and ask if there is any problem with that.

Sometimes, in the rush of the season, I wonder if we don't all get wrapped up in doing things that are easiest for us and feel "put upon" if anything else is wanted.

Of course, my usual disclaimer - This is not a criticism of others. This is my opinion and I respect the right of others to have their own opinion, even if it differs from mine. Or as I tell my wife when we are disagreeing, "You are entitled to your opinion, no matter how wrong it is."

[Burke]

I always put husband first, wife as spouse. More for my convenience than anything else due to info rolled over from year to year. If it is changed, I have put the income on the wrong person's data input. So I no longer change them. Last year, some requested switcheroo due to SSN and timing of rebate checks! Was based on primary SSN.

[Zee]

Zee

I also use Drake and have come across the IRA error sheet also. No reason to change everything. Just ignore. It is just a Drake warning won't affect efile etc. Funny they won't correct it. They are usually really good at making sure the software works correctly.

In my situation, the Drake SW warning prevented e-filing the return without the switch of the husband to spouse.