Does filing separately from a spouse that you have lived with the entire year ever make sense when there is an adoption credit involved?

[emmelate]

Turbotax told me after I completed my return that I could get $1800 more by my spouse and me filing separately than together. When I filled out the two separate returns, it appears that I would owe the government money. The separate filing status seems to have negated the adoption credit we should be getting this year.

[KrisD15]

To clarify, had you filed Married Filing Separate in previous years when you had paid adoption expenses? 

Normally you would NOT file Married Filing Separate when an Adoption Credit is involved. 

[emmelate]

We have always filed jointly, but TurboTax prompted me to file separately to save an additional $1,800 after I submitted all of my information on the joint return.

[TeresaM · Accepted solution]

In general it means less tax liability when couples file jointly but in some situations there are exceptions, especially if there are unusual years. An Adoption Credit might be something that would make a difference. However, the credit usually isn't available if you are Married Filing Separately and have lived together the entire year.

Adoption Credit Married Persons Not Filing Jointly

You may be able to take the credit or exclusion if all of the
following apply:

• Your modified adjusted gross income (MAGI) is less than
$263,410 or you have a carryforward of an adoption credit from
2021. 
• You report the required information about the eligible
child 
• You lived apart from your spouse during the last 6 months of
2022.
•  The eligible child lived in your home more than half of 2022.
• You provided over half the cost of keeping up your home.

[emmelate]

I’m glad I didn’t take the promoted advice for my filing.