Amending from MFJ to MFS

[dallas0709]

What is the name of your state? Indiana

I have a couple questions about filing an amended return to change the filing status from Married Filing Jointly to Married Filing Separately.

First, how would this be done? I'm assuming that whoever appeared first on the original joint return (ie the "taxpayer") would file the amended return, and whoever appeared second (ie the "spouse") would file an original return. Is this correct or would they both file amended returns? If they both have to file amended returns, how would the amount of the original refund be allocated to each amended return (for line 19, "Overpayment, if any, as shown on original return....")

Second, I would appreciate it if someone would confirm for me that someone filing Married Filing Separately can be claimed as a dependent on someone else's tax return (assuming the regular qualifications are met of course.) I ask because a couple of tax preparers that I've talked to seem to be confused by the rule governing claiming MFJ individuals that states that someone filing a joint return cannot be claimed if they or their spouse would have a tax liability if they had filed separate returns.

Here are the specifics of the case: A married couple file a joint return. The wife's mother realizes that if she claimed her daughter, she would go from owing several hundred dollars to getting a refund of a thousand dollars or so. Because the couple filed jointly and had a joint tax liability, as things stand the mother cannot claim her daughter. Therefore, they want to amend their return to change the filing status to MFS so the mother can claim her daughter.

Together, the couple made about $18,000, of which the husband made about $15,500 and the wife about $2,500. The wife/daughter was a full time student.

I would really appreciate any help/clarification with this situation. Thanks in advance!

 

[tranquility]

You cannot amend a MFJ return to a MFS one. The reason is the return creates a joint and several tax liability which the government will not relase the spouse from.

If you file before the due date of the return, it is not an "amendment" and the return is supposed to be accepted as your original return. So, you could each file new returns with the MFS status before April 17, 2007 for the 2006 tax year. Filing such returns can be tricky in some cases and the bottom line is to start fresh. "The amount of the original refund" will not be relevant, you merely recalculate the returns and come up with the new results. (The total refund will probably be less.) Be sure to calculate wife's (if all rules are followed) as being claimed on another's return.

However, did your wife live with her mother 1/2 of the year and did the mother provide her with at least 1/2 of her support and is your wife under 19 (or full-time student under 24) at the close of the year?

 

[dallas0709]

Thanks so much for the response tranquility.

I'm still a little confused about the wording in pub. 17 -

"Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return."

After reading your post I noticed the conspicuous absence of the word "amend" in that sentence. I'm guessing that's because to choose to file separate returns after the due date of the return after a joint return has been filed would mean to amend it, and amending it is, like you say, not allowed in this case. Do I have that right?

So - what needs to happen now is both husband and wife need to file original MFS returns. Is that right? I'm assuming that the IRS would then nullify the original return? Thanks so much for your help!

Please see your PM for the other particulars!

 

[LdiJ]

Thanks so much for the response tranquility.

I'm still a little confused about the wording in pub. 17 -

"Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return."

After reading your post I noticed the conspicuous absence of the word "amend" in that sentence. I'm guessing that's because to choose to file separate returns after the due date of the return after a joint return has been filed would mean to amend it, and amending it is, like you say, not allowed in this case. Do I have that right?

So - what needs to happen now is both husband and wife need to file original MFS returns. Is that right? I'm assuming that the IRS would then nullify the original return? Thanks so much for your help!

I am going to put this in a slightly different perspective, because I think that you will understand it better.



Please see your PM for the other particulars!

No tax return is considered to be final until April 15th (17th this year). That is why you CAN change to MFS as long as you do it before April 17th. If separate returns are filed now, those will be considered to be the original returns for 2006.