Hi everyone,
We are expecting a newborn in 2025 and plan to file our taxes under Married Filing Separately. To maximize the $2,000 Child Tax Credit, both my spouse and I submitted W-4 forms with $1,000 entered in Step 3 ("Add the amounts above for qualifying children and other dependents...") to reduce withholding from our employers.
However, I recently came across an article stating that Married Filing Separately may not allow an equal split of the $2,000 Child Tax Credit between spouses. Now, I’m unsure if our current approach is correct.
I have a few questions:
- Can we each claim $1,000 of the Child Tax Credit under Married Filing Separately, or is that not allowed?
- If splitting is not allowed, how should we correct our W-4 forms to avoid potential tax issues?
- If it is allowed but we need to take additional steps, what should we do?
I’d appreciate any guidance on how to properly handle this situation. Thanks in advance!
