Filing during/after separation

[kwashnak]

Q1: My partner and I informally separated as of SEP 2023. We've filed jointly ever since we were married in 2014. Her income is relatively low so she does not have taxes withheld from her paychecks. Typically when we'd file, my return would cover her deficit for taxes so we'd be balanced close to nothing gained or lost (within $100). 

Since we are separated, but still married as terms are finalized, is it best I file jointly for 2023 or file separately. My intuition is to file separately so I'm not covering her deficit, and perhaps she'll have some tax breaks if she files individually given her individual income bracket. Which option is best? 

Q2: If someone will be collecting support payments from me, or is dependent on my income, do I list them as a dependent on my paperwork? I currently have two young children, and I am curious if I should be claiming for my partner and my two children, and how that works if my partner and I file separately in terms of who is claiming what in terms of dependents. 

Thanks for any insight!!

[Gabriella_EA]

Hello kwashnak!

Thank you for joining us for the event today and for trusting us with your tax questions regarding your recent life events!

If you're still legally married as of 12/31/23, you can certainly choose filing married filing jointly or married filing separately for 2023. There are a lot of factors that go into determining which will give you the better outcome, and it's best to actually calculate it both ways before determining which route to go.

Married filing jointly often does provide the lowest overall tax liability, but you'll need to input actual figures to determine if that's still true for you this year, and whether that's preferred for your overall situation. Keep in mind that married filing separately often reduces or eliminates certain tax deductions and credits.

If you're still legally married, you can't claim your partner as a dependent, but you can claim your children as dependents, if you meet certain requirements. When you work on your return through TurboTax, we'll ask you questions about each dependent to confirm who is eligible to claim them for 2023 (if filing separately). If you file married filing separately, you'll likely be able to choose who claims the dependents (each claim one, one of you claim both etc.) for 2023, so this is another area where you can try it different ways to determine the best results.