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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 3375
Experience:  Over 20 Years experience
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We are a same couple in Long Island, NY State. We have

Customer Question

We are a same sex couple in Long Island, NY State. We have been filing individul returns so far. Same Sex marriage was legalized in NY in 2011 and we have had common law marriage for 5 years of record

My W-2 salary is about $60,000 and I have added 1099 income from other jobs of about $20,000. I own the home as primary residence and use thoe deductions on my return -- Value $400,000, Mortgage 30 year at 5.5%, $300,000 and then Taxes at $16,700 annual

She has a position with W-2 income at $130,000 approx and then aboutv $18,000 on 1099 for independnt contracting counciling. She dueducts the loss from a small rental property we have where net loss is about $6000 a year (this property is in both our names). Between Federal andstate she is payngout $50,000 in tax filing single

We are thinking we would get great advantage by filing a joint ederakl 10 40 and Joint NY state versu what we have been doing

Can you make a guess as to what savings would be on joint Federal and State tax filing verus each of us filing as singles?

Can you say for sure that filing jointly would really make a difference in our combined tax liability?
Submitted: 4 years ago.
Category: Tax
Expert:  R. Klein, EA replied 4 years ago.

R. Klein, EA :

Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.

R. Klein, EA :

The best way to estimate the difference between filing as Married Filing Jointly or as two single persons is to use a tax program like TurboTax Online for free. As long as you do not file the actual return (or use your actual SSNs), you can do "what-if" scenarios at no cost.

R. Klein, EA :

www.turbotax.com

R. Klein, EA :

Since you already have the 2012 return (presumably) done for each of you, you only need to do one return as married to compare.

R. Klein, EA :

Remember that due to recent IRS decisions, you can go back to 2011 to amend your returns to file jointly.

R. Klein, EA :

If you would like me to do the calculations, I can do so, but the value of the question will be higher since there is much work to do full calculations of 3 tax returns (Spouse 1 separate; Spouse 2 separate; and joint)

R. Klein, EA :

Doing it yourself will allow you to put in the nuances of your income and expenses more easily.

JACUSTOMER-j9e52z76- :

Thank you - We will do as you sugges - In genetral should it work out very much more favorably filing jointly?

R. Klein, EA :

I can't predict without running the numbers. The net loss on the rental property will be 0 allowed because of high income. Certain itemized deductions will be phased out.

JACUSTOMER-j9e52z76- :

In general can you say that it would be advantageous to have us file jointly from numbers we have given?

JACUSTOMER-j9e52z76- :

I understand.. we wil get Turbo and run the numberrs as you sugest

R. Klein, EA :

In general I can say that it is best to run free what-if scenarios. There are no absolutes in the range of income you two have.

R. Klein, EA :

Too many variables.

R. Klein, EA :

You could have the same joint income and different separate incomes and come to a totally different conclusion than the scenario that is your specific case

R. Klein, EA :

There's no "automatic" answer here

R. Klein, EA :

If you both had $25K wage earner jobs and nothing else, I can tell you that it would be little difference filing as two singles versus 1 couple

R. Klein, EA :

But your case is more complex.