Thursday, February 28, 2013. How to Split Income and Deductions when filing separately. If you and your spouse file MFS, how do you split your income and deductions, etc? Each of you report your respective income, deductions, exemptions and credits on your own return. Each taxpayer is generally allowed a deduction only for those items actually paid by the taxpayer. State law may determine who paid the item. In some cases, specific.

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