I retired in June of 2008 but my wife still works. This past April, we filed jointly as usual but had to pay in an additional $3,600 in federal taxes on our itemized joint returns, including an $80 penalty because I had not paid in any taxes on my social

ANSWER

The BIDaWIZ Team's Answer:

Filing separately will not change your tax liability. If you elect to file separately, you

will simply divide the same overall tax liability between the two spouses. The reason

is that your total deductions will be the same; they will simply be divided between the two

separate tax returns. Accordingly, the overall taxable income will be the same, and the total 

tax liability will be the same; or possibly greater. You may file a penalty abatement application,

with the IRS, to recoup the penalty that was assessed. Increasing your Spouse's withholdings,

or your retirement withholdings, will correct the problem.