Discussion:Can I claim all deductions, while my partner files a 1040-EZ?
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Revision as of 20:12, 17 February 2008 TxSrv (Talk | contribs) (''"Would there b) Next diff → |
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| {{ForumReplyPost|UserID=TaxNovice 1|Date=17 February 2008|Text=California does not recongize common-law marriages, so the Community Property status do not apply. You may want to check with your state regarding Common-Law marriages, both parties may argue that they each contributed to the household and therefore are entitled to 50% of mortgage interest, property taxes, charitable, etc. Good luck.}} | {{ForumReplyPost|UserID=TaxNovice 1|Date=17 February 2008|Text=California does not recongize common-law marriages, so the Community Property status do not apply. You may want to check with your state regarding Common-Law marriages, both parties may argue that they each contributed to the household and therefore are entitled to 50% of mortgage interest, property taxes, charitable, etc. Good luck.}} | ||
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| + | {{ForumReplyPost|UserID=TxSrv|Date=17 February 2008|Text=''"Would there be any red flags raised over the fact that I itemized every year, from 98 through 2006, and now for 2007, I'd be going standard?"'' | ||
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| + | No, IRS does not select returns for examination by making such a comparison. However, if your prior year returns claimed unallowable itemized, you should amend open years (2005-06).}} | ||
Revision as of 20:12, 17 February 2008
Discussion Forum Index --> Tax Questions --> Can I claim all deductions, while my partner files a 1040-EZ?
| 16 February 2008 | |
| We have lived together for about 15 years, though we were never legally married. We bought a house in 1998, a car in 2002, we have a checking account (out of which all bills are paid), and we have a Money Market account. All of these interests are held in both of our names, as joint tenants. Every year, since 1998, when we purchased the house, I have filed a Federal 1040 (Single status) and itemized deductions, claiming 100% (mortgage, property tax, charitable, etc.), while filing a simple EZ (Single) for her, claiming the standard deduction. We each make around 30K a year, and this scenario seems to maximize our refunds. I've seen a lot of back-and-forth on this topic, but I'm just trying to cover my a**.
Again, I've done this since tax year 1998, so am I looking for trouble? Am I doing anything wrong? Any expert opinions would be welcome. | |
| 17 February 2008 | |
| You can claim a dedcution for interest and taxes that you actually pay. If your significant other is paying some of those expenses, you are asking for trouble. | |
| February 17, 2008 | |
| Are you in a community property state? It sounds as if you have commingled all your funds and as you state you make similar amounts, it would be difficult to say YOU pay for just those items that are deductible. | |
| 17 February 2008 | |
| In an audit here, IRS would just split deductions 50/50 until you met your burden of proof to the contrary. Got any documents which will do that? | |
| 17 February 2008 | |
| Belle, good point. CP laws may apply to a significant other in some jurisdictions. | |
| 17 February 2008 | |
| We both contribute about the same $$ each month to our joint account, and it's from those funds we pay all our bills. Savings, and Money Market just sit there, gaining interest/dividends (or not). So I guess it's true, that we'd each be paying half of everything.
As it is, and has been for the past 9+ years, our (my) itemized deductions are slightly less than our combined standards. Taking all of the deductions myself, and claiming standard for my partner, gives us a total of about 1.5x our combined standards. We're not in a CP state, so I think what I'm hearing is that it'd be better (IRS-compliance-wise) for us to split all deductions 50/50, in which case we'd do better if we were to each take our standard. Would there be any red flags raised over the fact that I itemized every year, from 98 through 2006, and now for 2007, I'd be going standard? Thanks again. | |
TaxNovice 1 (talk|edits) said: | 17 February 2008 |
| California does not recongize common-law marriages, so the Community Property status do not apply. You may want to check with your state regarding Common-Law marriages, both parties may argue that they each contributed to the household and therefore are entitled to 50% of mortgage interest, property taxes, charitable, etc. Good luck. | |
| 17 February 2008 | |
| "Would there be any red flags raised over the fact that I itemized every year, from 98 through 2006, and now for 2007, I'd be going standard?"
No, IRS does not select returns for examination by making such a comparison. However, if your prior year returns claimed unallowable itemized, you should amend open years (2005-06). | |
