Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-04-2008, 01:48 PM
Junior Member
 
Join Date: Jan 2007
Posts: 6
If I am filing married filing separate, how should we split our itemized deductions?

If my spouse and I are filing separate returns, I am wondering how should we split our itemized deductions? Can both of us claim the itemized deductions?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-05-2008, 10:15 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
If I am filing married filing separate, how should we split our itemized deductions?

According to the tax code, "If you and your spouse file separate returns and one of you decides to take itemized deductions (on Schedule A), the other spouse will have a standard deduction of zero."

So, It would it would make more sense for the other spouse to also share in the itemized deductions to lower the taxable income and hence have a lower tax liability.

How do you share the itemized deduction?
Each spouse may be able to claim itemized deductions on a married filing separate return for certain expenses that are either paid separately or jointly with the other spouse.

If the deductible expenses that are paid out of separate funds, such as medical expenses or employee business expenses, they are are deductible by the spouse who pays them.

If the Mortgage payment and Property taxes are paid through a joint account they be shared equally on the Schedule A of the respective Spouses tax return.

Sometimes the deductible expenses that are paid from community funds, the allocation of the deductions may depend on whether or not you live in a community property state. In a community property state, the deduction is shared equally between both of the spouses.

Thus the answer to your second question is yes, both the spouses filing a separate tax return may claim the itemized deductions provided the expenses are shared as discussed above.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.