MFJ or MFS, which is better?

[Richard]

This is my first tax season using ATX. I have a return to do for a married couple where it will make sense to compare the result of them filing MFS versus filing MFJ. Is there a nifty gizmo in ATX that will make this comparison easier? How have you handled this kind of scenario in your practice?

[Tax Prep by Deb]

Go to add forms, and type in the search MFJ vs MFS and pull up that form.

Hope this helps.

Deb!

[Bart]

Go to add forms and type in "mfj" and the Joint Versus Separate Comparison worksheet should be there for you to choose.

[HV Ken]

I have found the MFJ vs MFS worksheet to not be very reliable. It is good for a quick glimpse, and if it reveals further analysis is warranted, I duplicate the return two times and use one duplicate for his and the other duplicate for hers. Usually only takes at most 10 minutes to delete the stuff from each duplicate.

[michaelmars]

Agree with Ken, especially in a high taxed state since atx doesn't compare state results.

[Margaret CPA in OH]

ATX does compare Ohio tax liability and lists both advantage for federal only and for combined federal and Ohio. I have 3-4 clients that I check annually. Like Ken, I prepare a joint return, check the MFJ vs MFS and duplicate twice deleting the other's information. I typically do it only when the savings are $250-$300 more as I do charge for the extra time it takes.

[Lion EA]

Won't your software split the return into two returns for you, using T vs. S to direct the data?

[Margaret CPA in OH]

If ATX does that, I haven't figured out how. I know that Prosystem does because I used to use it in a firm years ago. But it also costs much more. If anyone knows how to split ATX, please share! Already, though, having the analysis and coding every entry appropriately and duplicating then removing is way ahead of not that many years ago for lower cost software.

[Jack from Ohio]

I never trust the ATX MFJ vs MFS page. Many many shortcomings. The only true way is to either split the return, if your software does that, or duplicate and remove the appropriate information from both new ones, then compare the actual results.

Been burned by the ATX page.

Even though ATX will not "split" the return, it is not too difficult to create to duplicates and change them accordingly. I can do it in about 15 minutes now, after having done literaly hundreds here in Ohio.

[Margaret CPA in OH]

It's a case of trust but verify which we all should do anyway. There are some things one must double check on the form such as the real estate taxes and mortgage interest but I also print a pdf of the pertinent pages to confirm with the split returns to be certain all items are accounted for. I don't do hundreds but have done scores by verifying. Not sure I'm down to 15 minutes yet but I'm old.

[Richard]

All of this is very helpful. Thank you ATXers!