Dependent Question - Daughter was married on 11/26. She graduated from the university in Aug 2022.

[trneaville]

My Daughter was married on 11/26/2022 but before that she was a student at the local university that I footed the bill for in 2022.  In previous years, I was able to claim her as a dependent as she was a full time student in 2021 and was 20 years old. She turned 21 in 2022 and graduated from the university in August 2022.  Since she is married now, I'm assuming I cannot claim her as a dependent one last time. 

Should they file married filing separately so I can claim her 1 last time as a dependent

or

Should I just let it go and let them file married filing jointly and I do not claim her as a dependent?

I'm just trying to do what's advantageous for us but I don't want to lose out on those university fees that I paid for in 2022 and I still paid for more than 50% of her living expenses as she is living in our home: Water, Mortgage, Car, Auto Insurance, Food, Electricity, Internet, etc...

Please advise as we are trying to work thru this together with her and her spouse. 

[xmasbaby0 · Accepted solution]

You should sit down and figure it out together.   It is allowed for you to claim her and still get the education credit and the $500 credit for other dependents  if they file separately.   Her spouse will have to file married filing separately and say that she can be claimed as someone else's dependent.  

If they file a joint return no one can claim her.

When they file separate returns----there are rules that have to be followed.   They both have to file the same way.  When you file MFS you cannot get earned income credit or education credits.   So....will spouse lose those?  

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...

[Bsch4477]

It’s hard for us to judge since we have no idea about the couple’s income and deductions and credits that would come into play if she filed separately. The education credit would not be lost if she filed as married since she could claim it. It doesn’t matter that she didn’t pay those costs herself.