Married but Filing Separate Claiming Dependents

You will not get childcare credit if you file MFS.   But if you really want to file MFS, you can each claim one of the children.   When you file MFS the BIG rule is that you both have to file the same way----you either both itemize or both use standard deduction.

If you were legally married at the end of 2023 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $27,700 (+$1500 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return.

 Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice since with online, you get one return per fee.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separately

Q. My spouse and I file separately (MFS) and have two children, can each of us claim one child?

A. Yes.

Q. Does the person with the higher AGI  rule prevent us from each claiming a child? 

A. No. The higher AGI is only a tie breaker rule if the two of you can't agree on who will claim a child. 

Q. What is this all about?

• You lived apart from your spouse during the last 6 months of the year
• Your home was the qualifying person's main home for more than half of the year
• You paid for more than half of the cost of keeping up that home for the year,

A. It has nothing to do with claiming children.  If you are married, you may only file as Married Filing jointly (MFJ) or Married Filing Separately (MFS). You may not use Single or Head of Household (HoH) filing status. An exception: you may use HoH filing status if you meet those three conditions.