Important Note: The information provided here is for general guidance only and does not constitute professional tax advice. Tax laws are complex and can change. Always consult with a qualified tax professional or refer to official IRS publications for personalized advice regarding your specific situation.
Navigating the Shift: Changing from Married Filing Jointly to Married Filing Separately in TurboTax
Hey there! Are you looking to change your tax filing status from Married Filing Jointly (MFJ) to Married Filing Separately (MFS) in TurboTax? It's a significant decision with various implications, and you're in the right place to get a clear, step-by-step guide. Let's dive in!
You might be considering this change for a few reasons: perhaps you want to maintain separate financial responsibility, one spouse has significant medical expenses, or you're navigating complex financial situations. Whatever your motivation, understanding the process and its consequences is crucial.
Understanding the Key Differences: MFJ vs. MFS
Before we get into the "how-to," let's quickly touch on why this change matters.
Married Filing Jointly (MFJ): This is the most common filing status for married couples. You combine your incomes, deductions, and credits onto a single tax return. It often results in a lower overall tax liability and allows access to a wider range of tax credits and deductions (e.g., Earned Income Tax Credit, Child and Dependent Care Credit, education credits). Both spouses are jointly and severally liable for the entire tax liability, meaning the IRS can pursue either spouse for the full amount due.
Married Filing Separately (MFS): With MFS, each spouse files their own individual tax return, reporting only their own income, deductions, and credits. While it offers financial independence, it often leads to a higher overall tax bill for the couple compared to MFJ. Many tax benefits are either reduced or completely unavailable when filing MFS. For instance, if one spouse itemizes deductions, the other spouse must also itemize, even if their itemized deductions are less than the standard deduction.
It's essential to perform a "what-if" scenario analysis in TurboTax (if you haven't filed yet) or calculate both options before making this decision, as MFS often results in a higher tax burden.
Step 1: Have You Already Filed Your Return? (Engaging Question!)
Okay, let's get real for a moment. Have you already hit that "File" button on your Married Filing Jointly return in TurboTax?
Yes, I've already filed! Don't panic! It's still possible to change your filing status, but it involves filing an amended return (Form 1040-X). This process is a bit more involved, and there are crucial deadlines to consider.
No, I haven't filed yet! Great! This is the simpler scenario. You can adjust your filing status directly within TurboTax before submitting your return to the IRS.
Your answer dictates the path we'll take. Let's proceed based on whether your return has already been submitted.
Scenario A: You Have NOT Filed Your Married Filing Jointly Return Yet
If you haven't yet transmitted your return, changing your filing status in TurboTax is relatively straightforward.
Step 2: Accessing "My Info" in TurboTax
Log In to TurboTax: Start by logging into your TurboTax account for the relevant tax year.
Navigate to "My Info":
In TurboTax Online, look for a section or tab on the left-hand navigation pane, usually labeled "My Info" or "Personal Info." Click on it.
In TurboTax Desktop, this is typically one of the initial sections you go through when setting up your return. You might need to go back to the "Personal Information" section.
Step 3: Changing Your Marital and Filing Status
Edit Personal Information: Within the "My Info" section, you'll see your personal details. Look for an option to "Edit" or "Review" your information.
Locate Marital Status: You'll be asked about your marital status as of December 31st of the tax year. Ensure it's correctly marked as "Married."
Specify Filing Separately: This is the crucial part. After indicating you are married, TurboTax will typically ask, "Do you want to file this return together with your spouse?"
Select "No" or "I want to file separately." This tells TurboTax that you intend to file MFS.
Enter Spouse's Information (Even for MFS): Even if you're filing separately, you will likely still need to enter your spouse's name and Social Security Number (SSN). This is for IRS identification purposes and doesn't mean you're filing jointly.
Confirm and Continue: Follow the prompts to confirm your changes. TurboTax will then adjust its calculations based on your new filing status.
Step 4: Re-evaluating Your Tax Return
Once you change to MFS, you'll notice significant changes in your tax return.
Income and Deductions: Only your income and your qualified deductions will be included on your return. Your spouse will need to do the same for their separate return.
Standard vs. Itemized Deductions: As mentioned, if one spouse itemizes, the other must also itemize. TurboTax will guide you through this, but be prepared to discuss with your spouse how you will both handle deductions. If one of you has very few itemized deductions, this could significantly increase your overall tax liability.
Credits: Many credits, like the Earned Income Tax Credit, Child and Dependent Care Credit, and certain education credits, are not available or are severely limited when filing MFS. TurboTax will automatically reflect these changes.
Community Property States: If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), the rules for splitting income and deductions can be complex. TurboTax should prompt you for specific information, but it's often advisable to consult with a tax professional in these states.
Duplicate Returns and Fees: If you're using TurboTax Online, you'll need to prepare two separate returns (one for each spouse), and you will likely pay for each return separately. If you're using TurboTax Desktop (CD/Download version), you can prepare both returns within the same software, but you'll still be generating two distinct returns.
Step 5: Preparing Your Spouse's Separate Return
Since you've decided to file MFS, your spouse also needs to file a separate return.
Start a New Return (or Open Existing): Your spouse will need to either start a brand new return in TurboTax or adjust their existing one.
Select MFS Status: Similar to your process, they will go to the "My Info" or "Personal Info" section and select "Married" as their marital status, but then indicate they are filing "Married Filing Separately" and not with their spouse.
Enter Their Own Information: They will input only their income, deductions, and credits.
Coordinate Deductions: Again, a reminder: if you itemize, they must itemize. If you take the standard deduction, they must take the standard deduction. Coordinate this to avoid issues.
Step 6: Review and File (Both Returns!)
Thorough Review: Before filing, meticulously review both separate returns. Ensure all income is reported, deductions are correct, and credits are accurately applied (or not applied, as the case may be for MFS).
Electronic Filing: You can typically e-file both MFS returns through TurboTax.
Print and Keep Records: Always print and save copies of both your original and separate tax returns, along with any supporting documentation.
Scenario B: You Have Already Filed Your Married Filing Jointly Return
If your MFJ return has already been accepted by the IRS, you'll need to file an amended return using Form 1040-X. This is a more complex process and is subject to a strict deadline: you generally cannot amend from MFJ to MFS after the original due date of the return (typically April 15th, or the extended due date if you filed an extension). However, it's worth noting that recent information from TurboTax suggests you might be able to amend for the current tax season and the preceding two tax seasons, but this is a complex area, and professional advice is highly recommended.
Crucial Warning: The IRS generally does not allow a change from Married Filing Jointly to Married Filing Separately after the tax filing deadline (typically April 15th for the previous year's taxes), even with an extension. You can amend from MFS to MFJ, but not the other way around after the deadline has passed. Please confirm this critical deadline with the IRS or a tax professional for the most up-to-date rules.
Assuming you are within the permissible timeframe:
Step 2: Accessing Your Filed Return in TurboTax
Log In to TurboTax: Log in to your TurboTax account for the tax year you wish to amend.
Go to "Tax Home" or "My Tax Returns & Documents": Look for a section that allows you to access your previously filed returns. In TurboTax Online, this is often found under "Tax Home" or "Your Tax Returns & Documents."
Select the Return to Amend: Choose the specific tax year you want to amend.
Step 3: Starting the Amendment Process
Look for "Amend (change) a return": Once you've selected the correct year, you should see an option like "Amend (change) a return" or "Amend Your Return." Click on this.
Follow TurboTax Prompts: TurboTax will guide you through the amendment process. It will create a Form 1040-X.
Step 4: Making the Filing Status Change
Navigate to "My Info": Even when amending, you'll likely be directed back to the "My Info" or "Personal Info" section.
Adjust Marital/Filing Status: Change your filing status from "Married Filing Jointly" to "Married Filing Separately."
Remove Spouse's Income/Deductions from Your Amended Return: This is the critical and complex part.
Your Amended Return: Your amended return (Form 1040-X) will become your individual Married Filing Separately return. You will need to remove all of your spouse's income, deductions, and credits from this return, leaving only your own.
Spouse's New Original Return: Simultaneously, your spouse will need to file a new, original Married Filing Separately return from scratch, reporting only their income, deductions, and credits. This is not an amendment for them, but a completely new filing.
Coordination is Key: You and your spouse must coordinate closely on income and deductions, especially if you reside in a community property state. Remember the rule: if one itemizes, the other must itemize.
Step 5: Reviewing and Finalizing the Amended Return (Your Return)
Careful Review of Form 1040-X: Form 1040-X has three columns: "Original Amount," "Net Change," and "Correct Amount." Ensure these columns accurately reflect the changes due to your new filing status and the removal of your spouse's information.
Explanation of Changes: You'll need to provide a clear explanation for the amendment on Form 1040-X. State that you are changing your filing status from MFJ to MFS.
Print and Mail: Amended returns (Form 1040-X) usually cannot be e-filed if the original was e-filed. You will typically need to print and mail your Form 1040-X to the IRS, along with any supporting schedules that were affected by the change.
Wait Time: Amended returns take significantly longer for the IRS to process (often 8-20 weeks or more).
Step 6: Your Spouse Files Their New Original MFS Return
As mentioned, your spouse will prepare and file a new, original tax return as Married Filing Separately. This means they will start a new return in TurboTax (or whichever software they use) and select MFS as their filing status from the beginning. They will only report their own income and deductions.
Step 7: Post-Filing Considerations
IRS Processing: The IRS will process your amended return and your spouse's new original return independently.
Refund/Balance Due: Be prepared for potential changes in your tax refund or amount due. It's common for the combined tax liability to be higher when filing MFS.
State Taxes: Remember to consider your state tax implications as well. If your federal filing status changes, your state filing status will likely need to change accordingly, which may also require amending your state return.
10 Related FAQ Questions (How to...)
Here are 10 frequently asked questions related to changing filing status, with quick answers:
How to calculate if Married Filing Jointly or Separately is better for me?
Quick Answer: Most tax software, including TurboTax Desktop, allows "what-if" scenarios. If you haven't filed, input all your information, then change the filing status between MFJ and MFS to see which results in a lower overall tax liability. If you've already filed, you'll need to manually calculate or use professional software to compare.
How to ensure my spouse and I coordinate deductions if we file MFS?
Quick Answer: Communicate! If one spouse itemizes deductions, the other must also itemize. Decide together whether you'll both itemize or both take the standard deduction. Typically, if one spouse has significant itemizable deductions (e.g., high medical expenses, large mortgage interest), itemizing might be beneficial.
How to file an amended return (Form 1040-X) in TurboTax?
Quick Answer: Log into your TurboTax account for the year you need to amend, go to "Tax Home" or "Your Tax Returns & Documents," and look for the "Amend (change) a return" option. TurboTax will guide you through generating Form 1040-X.
How to track the status of my amended return?
Quick Answer: You can track your amended return using the IRS "Where's My Amended Return?" tool on their website (IRS.gov/wmar). It can take 3 weeks after mailing for your return to show up in the system, and up to 20 weeks or more for it to be processed.
How to deal with community property rules when filing MFS?
Quick Answer: If you live in a community property state (AZ, CA, ID, LA, NV, NM, TX, WA, WI), you typically must split your community income and deductions evenly, even when filing separately. TurboTax should prompt you for this, but consulting a tax professional is highly recommended to ensure compliance.
How to handle state tax returns after changing federal filing status?
Quick Answer: If your federal filing status changes, your state filing status will almost certainly need to change as well. Check your state's tax department website for their specific rules and procedures for amending or filing separate returns.
How to know if I qualify for Head of Household if I'm married but filing separately?
Quick Answer: It's rare for a married person to qualify for Head of Household. Generally, you must be considered "unmarried" for tax purposes on the last day of the tax year and pay more than half the cost of keeping up a home for a qualifying person. This typically applies in cases of legal separation or living apart for the last six months of the year with a dependent child.
How to avoid penalties when changing filing status?
Quick Answer: The most important step is to understand and adhere to the IRS deadlines for amending returns. If you owe more tax due to the change, pay it as soon as possible to avoid interest and penalties. Filing before the original deadline is always preferable.
How to get help from a TurboTax expert if I'm stuck?
Quick Answer: TurboTax offers various support options, including their online community forums, "Live Assisted" options where you can connect with a tax expert, and their general customer support. Look for "Help" or "Support" links within the TurboTax program or on their website.
How to determine if filing MFS will impact my eligibility for certain credits or deductions in the future?
Quick Answer: Yes, filing MFS often impacts credit and deduction eligibility. For example, you generally can't claim the Earned Income Tax Credit, Child and Dependent Care Credit, or education credits. Contributions to IRAs and Roth IRAs may also be limited. Always review the specific IRS rules for each credit and deduction.