What changed?

[Carolbeck]

And then there is 'my' couple who would benefit from MFS but because he is retired and has withholdings and she is self-employed but wants estimates in her name only, still want to file joint. Only been married a couple of years, age differences, etc.

I spent so much time with them, so many emails, arrggghh! EMailed pdf copies but their computer couldn't connect to printer so I had to mail client copies for review, yada, yada, don't let the door hit you on the way out.

I have a client like this. The reason they file MFS is she is able to have all her Teacher Student loans reduced and eventually forgiven by filing MFS. The husband always ends up owing so I have to actually prepare 3 returns MFJ, MFS for each showing how the wife claims the kids and receives all the credit, very little to itemize, State Tax WH, No credit for Student Loan interest or Child Care, still receives a refund.  Husband always ends up paying and claiming installment plan, he receives all the normal itemized deductions (They are all in his name).  Still works better than MFJ by a couple hundred.  But, the time it takes to prepare the 3 returns takes forever. Besides the MFJ vs MFS comparison in ATX does not show the State side which can be significant. Then they complain about a $150 tax return fee. Grrr.

Edited April 10, 2015 by Carolbeck

[Catherine]

Carolbeck you are WAY undercharging for that much work!!!

[Margaret CPA in OH]

Waaaayyyyy undercharging, Carolbeck! So sorry to hear that you don't have the state separate function. I was absolutely delighted when ATX added Ohio to that. For several years I just had a little spreadsheet to take AGI with OH adjustments and comparison with federal tax liability. A problem was that many folks cannot grasp the difference between tax liability and refunds and/or balances due.

"But I get a bigger refund from IRS if we file joint!" Ah, but you pay so much more in state tax if you do. Not math whizzes but today, neither am I!

[fredazcpa]

I have a client like this. The reason they file MFS is she is able to have all her Teacher Student loans reduced and eventually forgiven by filing MFS. The husband always ends up owing so I have to actually prepare 3 returns MFJ, MFS for each showing how the wife claims the kids and receives all the credit, very little to itemize, State Tax WH, No credit for Student Loan interest or Child Care, still receives a refund.  Husband always ends up paying and claiming installment plan, he receives all the normal itemized deductions (They are all in his name).  Still works better than MFJ by a couple hundred.  But, the time it takes to prepare the 3 returns takes forever. Besides the MFJ vs MFS comparison in ATX does not show the State side which can be significant. Then they complain about a $150 tax return fee. Grrr.

way to cheap, I do one just like that and it is at 3 times that and this is a community property state, takes 3 to 4 hours to just get it in the software