Thanks Carl. I'm not sure what I'm confusing. I understand that a spouse cannot be claimed as a dependent. There do seem to be circumstances where one can claim their spouse's personal exemption.
Here's the relevant part from the 1040 instructions:
"Check the box on line 6b if either of the following applies.
1. Your filing status is married filing jointly and your spouse can't be claimed as a dependent on another person's return.
2. You were married at the end of 2017, your filing status is married filing separately or head of household, and both of the following apply. a. Your spouse had no income and isn't filing a return. b. Your spouse can't be claimed as a dependent on another person's return."
So (2) is the relevant part for me. My status is MFS, my spouse had no income, and my spouse can't be claimed as a dependent on another's person's return. My question is about the second part of 2a--that "your spouse isn't filing a return." My spouse did file a return. According to the instructions, that seems to indicate that I cannot claim the exemption for my spouse.
But this IRS publication says something different. It says:
"Personal exemptions. You usually may claim one exemption for yourself on your tax return. You also can claim one for your spouse if you are married and file a joint return. If you and your spouse file separate returns, you may claim the exemption for your spouse only if he or she had no gross income, is not filing a joint return and was not the dependent of another taxpayer."
This says "is not filing a joint return" instead of "is not filing a return." I'm wondering about the discrepancy. It's my understanding that if my spouse had not filed a return at all, I would be able to take the personal exemption. I'm not sure if I can take it if she filed as MFS. Under the first quote above, it seems to preclude me from taking the exemption. Under the second quote above, it does not.
We file separately because of student loan implications. The tax savings from filing jointly don't outweigh what the increase in student loan payments would be.
