Couple are Wisconsin residents and separated since August 2009. Married in 2008. She owned the house and is planning to itemize her deductions. The software does not allow me to file EF because it requires financial data from the husband. They are not on speaking terms so that information is not available. I used MFS as her filing status and the return will be mailed in.. I would assume that he is required to itemize also. How does work out if he takes the standard deduction? Does IRS resolve this? Never had one like this before. Any help?
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Married Filing Separately - Itemizing
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I just dealt with this last week
for the first time as well. If you reference Pub. 501 on page 7, under the filing status of MFS it states the following:
11. If you spouse itemizes deductions, you cannot claim the standard deduction. If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return.
I had no problem E-filing a MFS return today and I was not required to put in any of the other spouse financial information. I just marked the filing status as MFS and marked the box that they did not live together for the entire year - maybe that made a difference with the E-filing issue you were having. These spouses are only communicating through lawyers and DID NOT want the other to know how much they made........although it will probably come out in court later on anyway.
I wondered about how the IRS handles when one spouse files with the standard and the other itemizes. I'm sure it must happen. Luckily the husband who could have itemized chose not to because the wife would have really been hit harder. The amount he would have got back wasn't worth "making more waves" he figured.
I don't know if this helps you or not.
Becky
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Living Conditions
If they lived apart all year, then they can each claim only their income (except joint interest income). That is why it worked for you. If they lived together any time during the year, then they must include all community property and divide by 2 (In some community property state, income earned after separation but before a decree of divorce continues to be community property. In other states, it is separate property). See Pub 555.
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Originally posted by zeros View PostIs the issue of supplying the spouse's income only relevant for the state return and not the federal?
income tax purposes you must report your
income under the marital property law unless one of
the above three exceptions in Wisconsin law applies.
Federal law differs in that if you live apart from your
spouse at all times during the taxable year and meet
three other conditions, you must disregard certain
state community property laws for federal income
tax purposes (generally called the “living apart all
year rule”). Wisconsin doesn’t follow this federal
treatment of spouses living apart all year.
Check out the pub 109 page 9 and 10.
Page 9 C. Innocent Spouse Rule - this will fly if both agree, but I encourage the taxpayer I am working with not to file in haste. If client files and is later notified by the other (ex)spouse they must then amend their tax return to include the income in notification but cannot now allocate any of their income back to the other spouse - essentially they're screwed. And notification can take place up to the due date including extensions. There are some examples on page 10 of the Pub 109.
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My two cents worth.
Originally posted by zeros View Post...I used MFS as her filing status and the return will be mailed in.. I would assume that he is required to itemize also...
Originally posted by zeros View PostHow does work out if he takes the standard deduction?...
Originally posted by zeros View PostDoes IRS resolve this?
Originally posted by zeros View PostNever had one like this before. Any help?
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