My husband is self employed and says that because he itemizes, i have to itemize. we file seperately because his is so complicated, he's almost always late filing. The problem is, he doesn't have a mortgage or property taxes or anything like that to itemize. He itemizes business expenses and the like. Does that still count. So I still have to itemize? Please help.
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I'm sure he has countless wonderful qualities, but tax expert isn't among them. His business expenses go on Schedule C, which has nothing to do with itemized deductions, which go on Schedule A. Those are such things as mortgage interest, state and local taxes and charitable contributions. You both must use the same deduction method--standard or itemized--but his business expenses have nothing to do with it.
-- Phil Marti Clarksburg, MD
Well, he's correct that if you file separately and one of you itemizes, the other also must do so. However, his late-filing practice doesn't necessarily have to preclude your filing jointly -- as it would be possible to file Form
4868, for an automatic extension of filing time (so long as tax due is paid by the normal filing date, there is no penalty). The other question is, does your husband _have_ to file his business expenses as itemized deductions? There may be an option for him to include them as a part of his costs of self-employment, using Schedule C, and still file MFJ. If you haven't done so, I would recommend you and your husband consider consulting with a tax accountant (or an Enrolled Agent), to weigh the alternatives and their effect on total taxes due. If's entirely possible that the MFS option is better than MFJ ... but at least you might feel better, for having explored the alternative. [Please note this group, and particularly this poster, have no qualifications for moderating marital disagreements -- and take no responsiblity in that area.] Bill
He is not itemizing when he takes expenses for the business. Itemizing goes on Sched A and business expenses go on Sched C. It sounds like both of you would profit from having a professional to help you with your taxes. Missy Doyle
[snip]
You don't *have* to, but if one of the spouses in a "married filing separately" situation itemizes, then the standard deduction for the other spouse is *zero*. So you should itemize.
-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
If he fills out Schedule C, as it sounds like he does, then he's not itemizing. You can take the standard deduction if you like.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
If you file Married Filing Separately (MFS), it is true that if one itemizes their deductions on Schedule A then both must itemize. The two returns must be the same- either using the Standard Deduction or itemized deductions. However, are sure you and your husband are talking about the same thing? If your husband is self employed, he is filing a Schedule C for his business and listing his business expenses there. This is not the same as "Itemizing". His filing a business Schedule C is not related to the choice of using the Standard Deduction or Itemized Deductions (Schedule A). Schedule C is about business expenses. Schedule A is about medical expenses, property taxes, state income/sales taxes, charitable contributions, etc. Do you realize that using MFS filing status often results in higher taxes? You may still want to do this given your circumstances, but you should realize the effect of the decision.
-- Charles M. Shanes, CPA Charles M. Shanes CPA, LLC Richmond, VA QuickBooks ProAdvisor Microsoft MPAN Member for SBA
Business expenses are claimed on a Schedule C, itemized deductions are claimed on Schedule A. He can claim his business expenses without itemizing.
the irs website has a publication that deals with itemized deductions (don't recall the # offhand) that should address your questions ___________________________________
-----> real address on hobokeni or hobokenx
What happens if one party refuses to tell the other which method they are using (in the throws of a painful separation, perhaps)? Or if one party insists upon itemizing to the detriment of the other? In the ensuing audit, how does the IRS decide who should use which approach? Not that it is applicable in this case, of course.
The rule is that if one itemizes then both must itemize, even if detrimental to the other taxpayer (which it often is). IRS will enforce this on audit.
-- Charles M. Shanes, CPA Charles M. Shanes CPA, LLC Richmond, VA QuickBooks ProAdvisor Microsoft MPAN Member for SBA
Whoever files first gets to choose. The subsequent filer must then use that method, unless s/he can convince the first filer to amend. Dennis
Not quite. You always have the right to itemize - the standard deduction is the option. So if the first to file chooses to take the standard deduction, and the second to file chooses to itemize, it is the first to file who will be forced to itemize when the chips are down.
-- Don EA in Upstate NY
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