Here are the answers to your three questions:
- Can we each claim $1,000 of the Child Tax Credit under Married Filing Separately, or is that not allowed?
No, you cannot split the Child Tax Credit between spouses filing separately.
If you and your spouse live together, and you are both the parents of the children who live with you, then you both qualify to claim them. If you have two children, you can decide between you to each claim one child on your separate tax returns. List only the child you are claiming on your tax return. If a child's SSN appears on more than one return, the second return will be rejected.
See this IRS webpage for more information on who qualifies for the Child Tax Credit.
By claiming the credit on a Separate return, you can only receive half the amount of the credit (up to $1,000) you would receive on a joint return. For 2024, the credit is up to $2,000 per qualifying child. To qualify, a child must have a Social Security number and be under age 17 at the end of 2024.
- If splitting is not allowed, how should we correct our W-4 forms to avoid potential tax issues?
You can do it on paper or electronically. You can ask your employer for a new form or you can have TurboTax prepare one. See here for more information. You can also use the TurboTax W-4 Calculator.
- If it is allowed but we need to take additional steps, what should we do?
It's not allowed.
Best wishes for your upcoming family event!
@john307sf
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