1040-NJ: Splitting property tax deduction on MFS return

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Follow the steps to split the property tax deduction for New Jersey when you are using the Filing Status Optimization (FSO) to create married filing separate returns.

  1. Complete the data entry for the property tax deduction in the married filing joint return. 
  2. Split the married filing joint return using the Filing Status Optimization Utility under Utilities > Filing Status Optimization.
  3. Open each married filing separate return (for both the taxpayer and spouse) and check the Taxpayer and spouse share same residence with total taxes and rent paid by both spouse entered below box in the NJProp screen in the Credits folder.  
  4. Enter the Spouse's gross income from the MFS return. 
  5. Open the married filing joint client and choose Utilities > Filing Status Optimization. Check the View FSO Report based on information entered in married filing separate clients box (located near the bottom of the window) and the FSO Report will update with the split deduction amount.

If you are not using the Filing Status Optimization utility to create married filing separate returns, simply enter the information in steps 3 and 4. 

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