Hi, we are living in CA state and have Person №1 (income 145K before tax, who is head of household + father of 1 child before 13 years and paid ~36K of mortgage interest payments only which are more than the standard itemized deduction of ~13K for filling married separately of ~26K for filling married jointly) and have wife Person №2 (income 170K before tax which also could be head of household, as she named in the title for the house loan). And let’s imagine we bought a Tesla and want to get an EV tax credit (both Person 1 and Person 2 are named in the car title). Correct me if I’m wrong, but is it better in our case to fill in tax as married filing separately, so that Person №1 will get full EV TAX Credit ~7.5K + CA EV TAX Rebate ~2K plus will get itemized tax deduction 36K instead 19K + 2K for 1 child tax refund and my wife will get ~13K standard itemized deduction?
- Can Person 2(wife) fill as married filing separately and which standard deduction she will get? 12,950 or as head of household 19,400?
- Can Person 1 get an EV tax credit if he is a co-registrant on the car title and married filing jointly is more than 300K but we will fill as filing married separately?
Thank you in advance.
