I got married last year. If my wife has a small business, should we file separately? Can I claim her daughter (my stepdaughter) as a dependent?

loughlinb · ‎February 27, 2024

We're not sure if this situation means we should file separately or not. We don't know what effect her having a business has on our filing status, or whether her daughter is legally my dependent just because we're married.

KrisD15 · ‎February 27, 2024

It is almost always more advantageous to file Married Filing Jointly since there are credits that are no longer eligible when you file Married Filing Separately.

The child would be claimed by the person that supplies more than half her support.

The business income should not have any less effect collectively if filed together with your income or separately.

You can use TurboTax Online to compute returns both ways and see which way is better for you.

HERE is a link with more help

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VolvoGirl · ‎February 27, 2024

Yes you can file a Joint return. Joint is the best way to file and has the lowest tax rates. Married filing Separate is the worst way to file and you lose several credits. Yes her daughter is your dependent now.

If she files Schedule C for her business you include it in the joint return.

Here's some general info on getting married. Did you both use Turbo Tax last year?

You can not transfer from or combine 2 returns or accounts. Just pick the return for the spouse that has the most complicated return to enter or has any depreciation or business or more investments. Or use the account for whoever you want to be listed first going forward (by the way you can not change the order of the names). Then add the other spouse's name, ssn and info to it.

You should usually file a Joint return which is only 1 return combined for the both of you. Make sure to stick with this one account for the future. Just ignore the other spouse's account.

Getting Married FAQ

https://ttlc.intuit.com/community/tax-filing-status/help/what-does-getting-married-mean-for-my-taxes...

And info on Getting Married…..

http://turbotax.intuit.com/tax-tools/tax-tips/Family/Getting-Married/INF12006.html

Is it better to file Joint or Separately?

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