Level 2

State and Local Tax Limitation for Married Filing Separate

Forum|Forum|7 years ago
March 30, 2019
1 reply
6 views

Is it possible for one taxpayer to claim part of the other spouses state and local income taxes paid or withheld in order to reach the $5,000 max on a married filing separate return, specifically where the spouses file separately due to the State's marriage tax penalty? I haven't seen anything to specifically preclude this, but would like some input on whether this is a valid tax planning strategy.

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itonewbie

Level 15

Unless the couple is domiciled in a community property state, the withholdings are separate properties, so you can't arbitrarily allocate them between the two spouses.

---------------------------------------------------------------------------------Still an AllStar

J

jmacpaAuthor

Level 2

Thank you for the quick response. Ohio is a marital property state which considers property and assets acquired in marriage as belonging to both. Marital property is considered Community Property. It seems to be a slight difference in wording but not substantially in meaning and intent. Is there something that I am missing?

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