Errors on form 8889-S when Married Filing Separately

[justin94067]

I'm receiving an error on form 8889-S saying 'Line 3A5, Family should not be checked. You indicated on the Federal Information Wks that spouse could be claimed as a dependent of another, which makes spouse ineligible.' 

I don't understand this error for a couple reasons (1) I didn't indicate my spouse could be claimed as a dependent of another. We're a family of 4 (husband, wife and 2 kids) and 'married filing separately'. I'm claiming one child as a dependent and my wife is claiming the other child as a dependent. Is the software confusing the child my wife is claiming as a dependent and saying I'm claiming 'spouse could be claimed as a dependent of another? (2) My spouse was never under my medical coverage (she has her own medical coverage through her employer). Only my kids and I were under my medical coverage, so why would the status of my wife make a difference here?

Do you have ideas on what how to resolve this?

[NCperson]

@justin94067 would you mind explaining why you are filing SEPARATE?  96% of married couples file JOINT for a good reason:  Congress motivates that behavior.  

Unless this relates to the lower earning spouse being on a student loan repayment plan, i have NEVER seen a situation where this makes sense financially, even if one of you owes back taxes or back child support.  

otherwise, go back to MyInfo - did you indicate your spouse could be a dependent of another?  you had to list her name and SSN in any event  - maybe a box in Myinfo is incorrect?  check the childv in MyInfo, maybe you set up this relationship incorrectly? 

[Critter-3]

Go back to MY INFO  and  edit  your filing status to correct your error. 

[AmeliesUncle]

---

@NCperson wrote:

i have NEVER seen a situation where this makes sense financially

---

There are a couple of states (Iowa and ... Ohio?) that can often make sense.  The State and Federal need to be the same filing status, and there can be a significant beneficial impact on the State return.

Plus, it is not only about the bottom line refund/owed.  Both spouses are 100% responsible for the tax return.  So if one spouse is not 100% comfortable with what their spouse is reporting, they shouldn't be filing Joint.  For example, if a spouse has a business, but you suspect he/she may be underreporting income or inflating deductions, BOTH spouses are still 100% responsible for that if they are filing a Joint tax return.

[NCperson]

@AmeliesUncle - I was referring to federal situations - not state situations.

Also, if there is a trust issue (one spouse not comfortable what is being reported), that is not what I consider 'a financial reason' - that is a trust issue as both spouses are not willing to sign the same return - and part of the 4% . 

[xmasbaby0]

In other words....we hope you are fully aware of the child-related credits you may be losing by filing separate returns, since you state that you have two children.

If you were legally married at the end of 2022 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 $25,900 (+$1400 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.    You might not have enough earned income to get the child tax credit or the refundable portion called additonal child tax credit.   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

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...