Filing Married Separate because of student loans

Forum|Forum|2 years ago
February 22, 2024
2 replies
13 views

I have clients that are happy and together with one child and are forced to file separate returns because of student loans.

They both deferred 2500 each for dependent FSA.

Iam taking the child on the wife's return and for the husband I am listing the child with the letter Q.

Iam getting an error message that I have duplicate ss numbers.

Their dependent care costs for the year are over 20K and in my opinion that both should be able to use the 2500 deferral.

Would appreciate your help on what I have inputed in Pro Series.

Many thanks

ProSeries Basic

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

you cant use the same kid for dependent care credit on 2 returns, the one that isnt claiming the kid will have to pick it up as taxable income.

This may be all a moot point, Ive seen that some student loans look at Household income, not just the borrowers income, so splitting them up might not even help. They should really check into the nuances of the loan to make sure this is worth the hassle.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

IRonMaN

Level 15

We have a client that for years has played the MFS routine. She went back to school to get an online masters degree from one of those colleges that was the equivalent of Trump University. Spouse makes a decent living but she has never made more than a few bucks in any year since. To avoid paying the chunk of student loans that she acquired to get her Masters in Useless Professions, she decided to go the MFS route. As a side note, she also inherited a few bucks from her dearly departed parents. We pissed that money away and somehow couldn't spare a couple of bucks to go against the student loans. Not my favorite firm client.

Slava Ukraini!

T

TaxGuyBill

Level 15

@Phillybilly wrote:

are forced to file separate returns because of student loans.

Their dependent care costs for the year are over 20K and in my opinion that both should be able to use the 2500 deferral.

No, they are NOT "forced" to file separately. They are CHOOSING to file separately rather than just sucking it up and paying their debt.

If that is your opinion, you are welcome to petition Congress to change the law.

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