“Will this program automatically determine which is more beneficial for my wife and I to file jointly or separate”
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Hi James - The software does not automatically determine this for you. However, you’re almost always better off married filing jointly (MFJ). Many tax benefits aren’t available if you file separate returns. Ex: You can’t claim a majority of the credits if you file separately. Also, if you file jointly, your standard deduction (if you don’t itemize) will be higher. This usually causes your taxable income and tax to be lower. Married filing separately (MFS) might benefit you if you’re liable for Alternative Minimum Tax (AMT) on a joint return. However, this is only true if only one spouse is liable on a separate return. The best way to figure out whether married filing jointly or married filing separately will benefit you the most is to prepare your returns both ways. Then, choose the filing status with the lowest net balance due or refund. If you choose married filing jointly, both of you can be held responsible for the tax and any interest or penalty due. One spouse might be held responsible for all the tax due — even if the other spouse earned all the income. If either spouse doesn’t agree to file jointly, then both spouses must file separately. There’s an exception if one of you qualifies for head of household status (HOH). For a complete list of the “special rules” when filing MFS, see page 22 of Publication 17 https://www.irs.gov/pub/irs-pdf/p17.pdf
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Sorry, there was a problem. Please try again later.Unfortunately, the program will not allow you to just uncheck the married box and select separate. The program needs to know how you are going to allocate the income and expenses for each filer. You will have to create a separate return for joint and separate filings. Start with the joint return first. Then, make a separate return for the spouse. That way you can go back to the joint return and select separate and make the needed adjustments for the taxpayer filer. Hope that makes sense to you. Good luck!
Sorry, there was a problem. Please try again later.Not automatically, but it is simple enough to do. Just create a two individual returns to find out how much you will have to pay or get back. Next change one return to add the joint income together and compare the output to see which option gives you a better return.
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