Should I file as Married Filing Separately?

If you are married, you can select the Married Filing Separately (MFS) or Married Filing Joint (MFJ) filing status. Generally, you will pay more combined tax on separate returns than you would on a joint return. However, unless you are required to file a separate return, you can figure out your tax liability both ways (on joint and separate returns) to see which way is more beneficial.

The MFS election may benefit you if you want to be responsible for your tax only, or if it results in less tax than filing a joint return.

If you and your spouse cannot agree to file a joint return, you may have to file a married filing separately return unless you qualify for a head of household status. See Form 1040 instructions for additional information.

Do any special rules apply?

Special rules limit or eliminate tax deductions and credits when using the married filing separately designation. Generally, this results in a higher combined tax liability than filing married filing jointly.

1. Your MFS tax rate is generally higher than on a joint return.
2. A credit for child and dependent care expenses in most cases is not allowed, and the benefit for excluding taxable income from your employer’s dependent care assistance program is limited to $2,500 (instead of $5,000).
3. You cannot take the earned income credit. There are exceptions based on whether or not you have a qualifying child and meet specific requirements.  Read more about the EIC here.
4. No exclusion or credit for adoption expenses.
5. You cannot take advantage of the education credit (American Opportunities), deduction for student loan interest, or the tuition and fees deduction.
6. You cannot exclude any interest income from US savings bonds you used for higher education expenses. 
7. If you lived with your spouse at any time during the tax year:
   • You cannot claim the credit for older people or people with disabilities, and
   • You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received.
8. The following credits and deductions are reduced at income levels half those for a joint return:
   • Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return)
   • The Child tax credit,
   • The retirement savings contributions credit,
   • The deduction for personal exemptions, and
   • Itemized deductions.
9. If your spouse itemized their deductions on their return, you must also itemize them. You cannot claim the standard deduction unless both parties do.

How do I file separate returns in the program?

If you file a separate return, you report only your income, credits, and deductions. You must enter your spouse’s full name in the space provided and enter your spouse’s SSN or ITIN in the space provided unless your spouse does not have one and is not required to have a SSN or ITIN.

If you are filing a separate return for each spouse, each return requires an individual account username. 

If you live in a Community Property state, you may need to file additional state forms when filing Married Filing Separately. For additional information, refer to your state website.