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Deductions & credits
Yes it does sound right. He received $1400 for a dependent that was only claimed on his earlier return. The IRS sent out those $1400 payments in a hurry so if he received it he does not have to pay it back. But that $1400 was really a credit you could get on a 2021 tax return. Since he already received $1400 for a dependent who is NOT being claimed for 2021, he cannot get another $1400 for the baby. The recovery rebate credit is only based on 2021. Since he must say on his return that he received $2800 already, he is not eligible for more.
Why are you filing separate returns? Do you know that you lose other child-related credits by filing separately? Or why are you not the one claiming the baby?
If you were legally married at the end of 2021 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 $25,100 (+$1350 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.
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