Yes, you need to answer Yes, if you lived with your spouse at all during the last half of the year.
The purpose of this question is the see if you can claim Head of Household status. Married taxpayers who live together are not eligible to claim Head of Household. Your options are Married Filing Jointly or Married Filing Separately.
As xmasbaby0 points out, you may qualify for Earned Income Credit, if you file jointly, and your joint income qualifies.
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