@ajaykmis -
a few thoughts:
1) what was your combined income in 2022? the rule for the credit is the lessor income of the current year and the prior year. So even though your combined income is over $300,000, was that the case in 2022? (It's line 11 that is the critical income line to review)
2) your spouse still needs enough income so that the tax liability on Line 22 prior to applying the credit is at least $7500 to capture the entire credit, but in this case that may not be necessary because even a small credit is better than no credit.
3) best to test out both scenarios (file separate and file joint) at this website. It is quite accurate and reflects the 2023 tax rules. You do risk losing other tax benefits by filing Separate but the only way of really understanding the implications is to test it out. Remember that both of you must either itemize or take the standard deduction when filing Separate. One can't itemize while the other takes the standard deduction.
https://www.dinkytown.net/java/1040-tax-calculator.html
