Tax Tip #215

The standard deduction for taxpayers filing separately is approximately $14,000. If one spouse has deductions of only $1,000, that spouse would benefit from taking the standard deduction since it is greater than itemizing. If the other spouse has deductions of $23,000, that spouse would benefit from itemizing. 

However, the IRS states that if spouses file separate returns and one itemizes, the other spouse must also itemize. In this case, the spouse who would benefit by approximately $13,000 from taking the standard deduction would be forced to itemize. Examples of itemized deductions are donations to charity, mortgage interest, medical expenses, real estate taxes and state income taxes. 

Planning on filing separately for this year? Reach out to a Goldstein & Loggia team member to plan for this situation and avoid an unexpected tax liability come next April 15th.