Here's my quesitons..
My salary is say 14 times my spouses.
Here's my question.
If we file jointly, our combined medical bills (prescriptions / doctors bills etc) do not hit the minimum celing for deductions. If we file seperately, my spouses medical expenses exceed her gross income. Now consiidering we can't file long forms, what are the effects if my spouse claims all the medical bills, and I don't claim anything. Is there any benefit to this approach? Thanks in advance.
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The only way to tell is to compute both ways, including the state. Remember that if you file separately you must both use the same deduction method, standard or itemized.
-- Phil Marti Clarksburg, MD
When filing seperately, if one spouse itemizes the deductions, the other spouse *must* itemize. I'll bet that it still would be beneficial for you to file jointly. Only in Ohio (in my practice) with both spouses making a lot of money, is it beneficial to file seperately. Missy Doyle
You just have to do the math and see. This is an example to be sure where it could make a difference. However if your income is 14 x her's, I seriously doubt that any increased tax savings due to her medical deductions would offset the increased tax bite due to your higher marginal tax rate. ChEAr$, Harlan Lunsford, EA n LA Sat 12 Mar 2005
What do you mean, "you can't file long forms"?
In any case, if you file MFS (Married Filing Separate), and you're not in a community property state, and your wife actually paid her medical expenses out of separate funds, then she would probably have no tax due -- but your return, on which you cannot take the standard deduction (or, to be precise, your standard deduction is $0 if your wife itemizes), would probably be higher than your joint return would be. I'm saying it's likely there is no beenfit.
None that I can see, unless making a higher than necessary tax payment is one of your life's goals. __ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
Probably not. Work the returns both ways and see what the total tax liability is each way. Note that if one spouse itemizes on a married-separate return, the other spouse must itemize also.
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