Energy credit and MFS

[Margaret CPA in OH]

First time to have MFS better than MFJ with energy credit.  I've read the instructions but cannot find that MFS will reduce the allowed credit in half ($250 each in this case).  Before splitting, should it be on just one return or split?  The receipt is in only one spouse name, they reside together, joint checking account.

Thanks

[Margaret CPA in OH]

Bump Anyone? I've looked everywhere I can think of and can find nothing.  It doesn't seem right for each to have $500 credit but if I put in even half the cost for each, the calculation does not take into account that it's the same home.  The bought two doors and, if split between them, they still would get $500 each filing separately but only $500 combined if filing joint.  This just does not seem right but how to manage if wrong?

[mcb39]

Just give it to the one whose name it is in and not the other.

[jklcpa]

I agree with Marilyn.  Each category of component added to that residence has a limitation that shouldn't be exceeded for that item or category of items. Give it to one or the other. Obviously the exception to this would be if they are filing separately and costs are attributable to two homes.

[TexTaxToo]

The instructions were updated in January to say that even if they are filing jointly, spouses with separate main homes can take the maximum credit on their respective homes, and can file two Forms 5695 in that case.

Neither the law nor the instructions are completely clear, but I think the rules on joint occupancy would apply to spouses filing separately with the same home - that is, they could pro-rate the credit based on how much they individually paid compared to the total cost, but the total credit would be limited to the maximum per item.

Simplest would be to give to one or the other as Judy and Marilyn suggest.

[Margaret CPA in OH]

They share one main home, the name of one spouse is on the receipt, funds paid from a joint account.  I put it on the return with the name matching the receipt.  All good!

Thanks