Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: MFJ -> MFS due to Schd A medical expenses Date: 9/6/2001 7:13 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
"Unless you live in a community property state, you're going to be better off with a joint return. If you do live in a community property state, separate returns may be worth investigating"

Could you please elaborate just a little on that comment?


In a community property state, income and deductions are generally split evenly between the spouses. In separate property states, income and deductions are claimed by the spouse that earns or spends the money. In this case, one spouse has all the income, so MFS returns will be very different depending on whether their state is a community or separate property state. In a community property state, the non-working spouse will have income to report, while in a separate property state, there will be no income. With no income, there's no benefit to any deductions. Hence, for this taxpayer, there's probably no benefit to filing separate returns unless they're in a community property state.

--Peter <==wondering if he elaborated a little too much?
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement