Join Early Retirement Today
Thread Tools Search this Thread Display Modes
2015 Tax filing - married/jointly vs. married/separately
Old 04-09-2015, 09:24 PM   #1
Recycles dryer sheets
Newventurer's Avatar
Join Date: Sep 2012
Location: in the sticks
Posts: 458
2015 Tax filing - married/jointly vs. married/separately

2015 will be the first year that I will have no income from work, my DW is continuing to work full time.

I would like to plan for the most tax advantaged strategy for this situation and would like to hear your input on things that I should keep in mind to determine the optimal strategy. I have done some reading regarding the Roth conversions and possible benefit of filing separately when using that strategy. Anything else? How does one divide joint account income (CDs) if filing separately? Thanks

Newventurer is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-10-2015, 07:23 AM   #2
Moderator Emeritus
braumeister's Avatar
Join Date: Feb 2010
Location: Flyover country
Posts: 13,552
Something to consider is that in many states you must file with the same status as on your federal return. That can make a significant difference in the bottom line, so check if this is the situation in your state, then run test returns both ways for both federal and state.

braumeister is offline   Reply With Quote
Old 04-10-2015, 07:38 AM   #3
Thinks s/he gets paid by the post
Join Date: May 2014
Posts: 4,323
Please let us know how this works out; DH and I were in that position for years (in our case, he had SS and I was working) and filing separately never made sense to us. Even if I allocated just enough of the deductions to him to get his Federal taxes down to zero, my side of the taxes skyrocketed. Our state marginal rate wasn't bad so I figured that wouldn't make up the difference.

Keep in mind that you and DW both have to itemize deductions or neither can itemize. That's because if, for example, you take all the deductions and DW takes the standard deduction, she's getting an "extra" deduction and that's not permitted.

The only time Married Filing Separately worked for me was with my first husband in NJ; the $$ we saved on NJ taxes was worth it. I also filed separately the year we were separated prior to our divorce, knowing he wouldn't file and wanting to keep my own record clean.
athena53 is offline   Reply With Quote
Old 04-10-2015, 01:31 PM   #4
Thinks s/he gets paid by the post
gauss's Avatar
Join Date: Aug 2011
Posts: 2,581
I used the current year's copy of my favorite tax software to create pro-forma returns for the next year when I stopped working. I certainly did not want any surprises!

gauss is offline   Reply With Quote
Old 04-11-2015, 10:33 AM   #5
Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,043
It is worth checking. It rarely pays off though. I've done hundreds of returns for retirees over the past 5 years and there were only two cases where the tax liability was lower for MFS.
jebmke is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
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

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

Similar Threads
Thread Thread Starter Forum Replies Last Post
Jointly owned property question tmm99 Other topics 7 02-14-2014 10:22 AM
Are there any couples jointly participating on the ER forum? Ready FIRE and Money 24 08-02-2013 01:49 PM
Jointly Owned Non-spousal inherited IRA WilliamG FIRE and Money 24 03-24-2013 04:49 PM
Tax planning- married filing seperately jIMOh FIRE and Money 9 10-24-2008 06:55 PM
Married Filing Separately Status cube_rat Young Dreamers 11 11-18-2005 08:11 AM

» Quick Links

All times are GMT -6. The time now is 08:55 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.