Joint or separate tax return?

[Fred12345]

Can a married couple with 2 children start a separate tax return, and list 1 child each as a dependent on their return?

[xmasbaby0]

You can do that, but why would you want to?  You will lose some child related credits and limit the amount you can get for the child tax credit.   Filing separate returns is usually the worst way to file especially if you have 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. 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...

[VolvoGirl]

Yes but why?  Joint is almost always better.   Here's some things to consider about filing separately……

In the first place you each have to file a separate return, so that's two returns.  And if you are using the Online version that means using 2 accounts and paying the fees twice.  

Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong.  If one person itemizes deductions on Schedule A then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!  And if you are in a Community Property state it can be complicated to figure out.

And there are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

And contributions to IRA and ROTH IRA are limited when you file MFS.

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

See …….

https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-...

[Fred12345]

and if my children are still small (6 and 12 years old). Even so, it is not convenient to make the declaration separately?

[xmasbaby0]

@Fred12345 Did you read anything we posted for you?   You will give up earned income credit, childcare credit and have less income on each of your returns for the child tax credit if you file separate returns.  The refundable child tax credit is based on the amount of income you earned.   

It is not easy to compare MFJ to MFS using online TT but you can do it.  Since you only get one return for each account and user ID, you have to use 3 accounts and user ID’s—one for MFJ and two for each of the MFS returns.  Compare, choose, and file—and pay—accordingly.

It is much easier to do this comparison using the desktop version of TT installed from a CD or downloaded to your own computer.  You pay once for the software and you can prepare multiple returns easily, and it has a “what if” feature that allows comparisons.

[Fred12345]

and if my children are still small (6 and 12 years old). Even so, it is not convenient to make the declaration separately?

[VolvoGirl]

Why do you want to file separately?  Do you think there's a reason it will be better than filing a Joint return?  

[Mike9241]

@Fred12345 what's convenient about having to prepare separate returns in separate accounts, paying more Turbotax fees, likely paying more in taxes (especially since with small children you will lose some tax credits cited in other posts)?  however, no one can stop you from donating to the US Government. You get no deduction for doing that.