Married Filing Separately- Head of House Hold and Capital Loss Carry Over Questions

[TomB11]

Background: I and my wife have been filling MFJ till 2022. However, I have been living separately in another state since 2022 (FL) and working full year in FL and as a non-resident in MA. In 2023,we have elected to fie MFJ at the Federal level (GA address) and MFS for our state returns (my wife in GA, and I in FL). We usually take standard deductions. In FL, I have no requirement to files, as I have no other income besides W2 and some dividends and interests.

Q1: TurboTax software suggested that my wife use Head of House Hold when entering her marital status (as married, living separately). We have children who live with my wife.  Do I need to force the software to switch to MFS somehow?.

Q2: In the Personal Information section, Turbo Tax asked the question, if "I (the spouse who lives separately) plan to file in 2023". What should be the answer to this question (given that we are filing MFJ for Federal and I am not filing any  FL State return).

Q3: We had capital loss carryover from past years. Should we apportion it, or leave it with my wife's GA state return (as I do not have to use it- as I am not required to file in FL). From various postings I gather that my wife can claim only $1500 of the carryover loss in 2023- is this correct as (strictly speaking) my wife is filing as HOH (not as MFS).

Q4: Lastly, which 1040 should we attach to my wife's MFS state return for GA. The 1040 from MFJ at Federal level (or the synthetic 1040 generated when creating GA state MFS return).

Thank you. 

[DianeW777]

Here are your answers:

• Q1: TurboTax software suggested that my wife use Head of House Hold when entering her marital status (as married, living separately). We have children who live with my wife.  Do I need to force the software to switch to MFS somehow?
  • You have chosen to file jointly, however for federal purposes if you filed separately you would qualify for MFS on your return and your wife, if she filed on her own,  would be able to file as head of household since the children live with her all year and IF she provides over half the cost of the home (any child support she might receive would be considered provided by her). This also assumes no child provides more than half of their own support.  On the Georgia return she would be filing MFS.  Page 11 of the Instructions.
• Q2: In the Personal Information section, Turbo Tax asked the question, if "I (the spouse who lives separately) plan to file in 2023". What should be the answer to this question (given that we are filing MFJ for Federal and I am not filing any  FL State return). 
  • Yes, you are filing a return with her.
• Q3: We had capital loss carryover from past years. Should we apportion it, or leave it with my wife's GA state return (as I do not have to use it- as I am not required to file in FL). From various postings I gather that my wife can claim only $1500 of the carryover loss in 2023- is this correct as (strictly speaking) my wife is filing as HOH (not as MFS).
  • You will file the full amount on a joint federal return and then split it on the state return.
• Q4: Lastly, which 1040 should we attach to my wife's MFS state return for GA. The 1040 from MFJ at Federal level (or the synthetic 1040 generated when creating GA state MFS return).
  • You should send a copy of the actual joint Form 1040 that was filed.

[VolvoGirl]

And are you doing the returns right?  

See this article on how to file a joint federal return and file separate state returns…..
https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-prepare-a-joint-federal-return-and-se...

You need to do 3 separate federal returns. One for Joint and 1 for each spouse to do the mock separate federal return to do the separate state returns.

If you are using the online version it will be cheaper and easier to do it in the desktop version. Contact Customer Service to give you the desktop program download.

Reading the FAQ it looks like you have to use 3 accounts. One to file the Joint return. Then you each need another account to fill out fake federal MFS returns to do your separate state returns. So you will have to PAY for 3 online accounts (3 federal returns and 2 state returns). That's why it's cheaper to use the Desktop installed program. If you don't have a computer to install the desktop program on maybe it would be cheaper and easier to go to a local accountant or tax place.

[TomB11]

Hello Diane W777:

Thanks for your guidance, based on which it looks like I made two errors: 1) My wife submitted the GA return as HOH (as the software suggested) not as MFS (as you suggested), and 2) I have attached the Form 1040 that came along with the MFS/HOH two state returns (not the Form 10140 from the MFJ Federal return).

Just wondering if I should try to correct this, or leave it as is until the returns get processed.

Thank you kindly.

[TomB11]

Hello VolvoGirl:

Thanks for the suggestion. I was using TurboTax Premier desktop version. Preparing multiple version was easy. And I filed by mail.

I was surprised to see the level of options available for various personal/family situations. 

Thank you.