estate tax estimator
Tax refund estimator shows our refund will be higher if we do married filing separately. Is this okay?
This is our first time filing taxes as a married couple. We bought a new car which we get a stimulus deduction for and also have our mortgage insurance & real estate taxes to claim. We did 9 different scenarios in the TurboTax refund estimator to see which would pay out the most depending on who claims what. I made $28K, he made $48K. I’m 24, he’s 26. Turns out, we would get $564 MORE if we file separately with him claiming the vehicle and the mortgage taxes & insurance. I want to do this obviously because we get more refund but it seems weird to me, especially since I read so many things against filing separately and the only reasons you SHOULD do it (you are separated, one person makes a lot and the other makes very little or one of the spouses is cheating on their taxes). I know he makes more than me but not THAT much.
Does anyone else do this? Is there anything wrong with doing it?
If he itemizes then you are required to itemize also EVEN IF YOU HAVE NO ITEMIZED DEDUCTIONS. This means you do not even get the standard deduction. Put that scenario in and see how it plays out.
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