Married Filing A Separate Return

[Christian]

An older couple got married last year. Oweing to large mortgage payments, contributions, etc she has been able to itemize even under the new rules. As he has an outstanding tax bill she wants to file mfs. Under former rules those itemized deductions would by law be split evenly between husband and wife. Is this still the law or did the new rules effected in Decmber 2018 change this?

[Possi]

I believe the law did not change, but why not file a joint return with and Injured Spouse? 

I do that all the time. 

[Terry D EA]

Itemized deductions can be allocated to each spouse and there isn't a requirement for a 50/50 split. If one spouse has an expense that is theirs, then that spouse should take the full deduction. If one spouse itemizes the other will have a zero standard deduction and therefore it is in their best interest to itemize as well.

In your client's situation, why couldn't they file MFJ and the spouse without the tax bill file form 8832 injured spouse? That way her portion of the refund will not be used to pay his tax bill. This may benefit both. I would work it both ways and show them each so they can make a decision. 

[Christian]

OIC ATX has a handy dandy toggle to compare this. I have not dealt with this in ages as almost all of my clients never ever use it. It looks as if the wife can keep her itemized deductions but her husband will loose any deduction even the standard deduction and the the tax treatment of their social security and railroad tier retirement 1 benefits changes materially. Initially it looks like not a good idea.