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Financial Planning / Tax Strategies


Subject:  Re: Married: File Joint or Separate Date:  3/28/2014  1:04 PM
Author:  irasmilo Number:  120615 of 127519

In splitting your returns, it's possible that the income on one of the separate returns is low enough to avoid AMT, but the income on the other should get hit harder with AMT. So the net effect should be small, and quite possibly a higher tax on the split returns.

That's in line with what I would expect. The one situation where I have seen MFS as better than MFJ is where the spouse with the lower AGI has significant deductions that are subject to AGI haircuts (medical, miscellaneous itemized deductions) which exceed the lower AGI haircut but are "lost" on the MFJ return, and the higher AGI spouse still has sufficient deductions to not be "penalized" by having to itemize.

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