Schedule A

[Christian]

The wife of a married client wants to file separately beginning this year. My understanding is their itemized deductions are split down the middle for both of them no matter that he has paid much more state income tax than she has. Also she wants to deduct interest expense on  a son's college education loan but here my understanding is this deduction is NOT allowed to the MFS election. Is this correct ? The son is from a previous marriage and not her current husband.

[kathyc2]

There are quite a few deductions/credits not allowed on MFS student loan interest deduction being one of them.

State income taxes go to each from their withholding on W2's.

If only one spouse is on mortgage or deed, then all goes to the named person. If only one spouse is on a charitable receipt, that is the person it goes to.  

For joint mortgage, receipts etc. you can either split 50/50 if payment came from joint account or prorate according to income.  For example if combined income is 150K and one spouse is 100K and other is 50K then items would be split 67% and 33%.  

Same for interest, investment accounts, etc.  If both on account either 50/50 or prorate.  

You should use same method for both income items and deductions.

Sounds like this may be a situation where they are separated.  If so, present options and then they need to fight it out and both sign off on the method used. 

 

 

[Christian]

Thanks for your response. I could not see why an individual could not claim their own state tax payments and individual contributions etc. I rarely if ever encounter a MFS request and this clarifies the issues I had. They are married but the wife is a guarantor of payments on a son's college education loan which he cannot pay and is on the hook for principal and interest payments.  Imagine her surprise to find she will be unable to deduct her interest payments using MFS.

[kathyc2]

Interestingly I'm working on one today.  Her only income is SS disability.  He had house before they were married and she was never added to deed or mortgage.  Sch A total is less than 29,200, but with pushing it all to him on MFS other than small charity in her name, they come out better MFS.