We are retired on husband's pension & SS, and have a full-time home in Mexico. We maintain voting residency in TX. Wife lived in an apartment for partial year in CO to take care of grandson and earned small income, and not yet eligible for SS. Wife will file separately so CO does not tax husband income. Considering wife filing "Head of Household" in CO with herself and grandson as deduction, and husband filing "Married Separate" in TX with only himself as deduction. Is there a better option to maximize grandson deduction and limit tax liability?
