@rmvtav wrote:
For clarification, is it household income of under $150,000 or personal income under $150,000? My husband makes way more money than me so I wonder if I should file separately in order to be able to qualify for this. We already took a huge hit on this last stimulus because of his income.
It appears that there is no reduction in the limit when filing MFS. So possibly, filing MFS will exempt part of your UEC from tax when filing MFJ would not. That will save you about $1300-$2600 depending on your other income. However, filing MFS usually costs money, because many deductions and credits are disallowed or reduced (like IRA contributions) and the tax rates are slightly higher, so you will want to carefully test your tax returns both ways before you file. Remember that if either spouse itemizes their deductions on schedule A, both spouses must itemize, even if one spouse has zero deductions. You are not allowed to stack all the deductions on one spouse and have the other spouse take the standard deduction.
