Can You E-File if You Are Married But Filing Separately in Texas?
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If you live in Texas and plan to file your taxes separately from your spouse, you may wonder whether you can still e-file. You can file as “Married Filing Separately” (MFS) in Texas and still use e-filing, as long as you meet IRS requirements. However, it is essential to understand what filing separately means for your taxes, especially in a community property state like Texas.
Texas does not have a state income tax. Therefore, your decision to file separately only impacts your federal return. Whether you should file separately depends on your financial goals, your spouse’s tax situation and if you may lose out on valuable tax credits by choosing MFS.
How MFS Works
When you select MFS, you and your spouse file two separate federal tax returns. Each of you report your income, deductions and credits, and you are only responsible for your tax liability.
You will use Form 1040 or 1040-SR, and select MFS as your filing status. If you use online tax software, it will guide you through the process, but you will still need to provide your spouse’s name, Social Security number and date of birth. If your spouse does not have a Social Security number, you can still file separately, but you will need to mail your return and the IRS does not allow e-filing in that situation.
Texas Community Property Rules
Texas is one of nine community property states, which means most income earned and assets acquired during marriage are considered jointly owned. When you file separately, you may need to split income and deductions 50/50 between spouses, even if only one spouse earned the income. This can make tax preparation more complicated, and it is one reason many couples seek professional help when filing separately in Texas.
Pros of Filing Separately
Filing separately can provide a layer of financial protection. You will not be held liable for your spouse’s tax debt or any penalties from inaccurate reporting on their return. It can also be helpful if one spouse has significant medical expenses or miscellaneous deductions. Because some deductions are tied to a percentage of your adjusted gross income, keeping your income separate may make it easier to qualify for them.
Cons of Filing Separately
The trade-off is that you may lose access to some valuable credits and deductions. If you file MFS, you generally cannot claim the Earned Income Tax Credit, the Child and Dependent Care Credit, or education credits like the American Opportunity Tax Credit and the Lifetime Learning Credit. Your deduction for student loan interest and contributions to a traditional IRA may also be reduced or eliminated.
Additionally, your standard deduction will be half of what it would be if you filed jointly.
E-Filing Made Simple
Despite these trade-offs, e-filing as MFS is straightforward. Most tax software platforms support the status and automatically adjust the tax brackets and deduction amounts. After filing, you still have the option to change your status to “Married Filing Jointly” within three years by filing an amended return if you later find it would have saved you money.