I stopped working in May 2023. I might of made less than 15k. I’m not sure yet. But if I did would I still file taxes as well?

[xmasbaby0]

Are you legally married and living together?   Why are you asking if just one of you should claim the children?  Why are you not filing a joint return?    If you file separate tax returns, you lose some of the child-related credits.  You cannot get earned income credit, you cannot get the childcare credit, and you will have a lower amount of income to get the child tax credit.   If you file a joint return, you are eligible for more child-related credits.

If you were legally married at the end of 2023 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 $27,700 (+$1500 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 since with online, you get one return per fee.

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...

[Opus 17]

There is so much missing from your question.

If you file a joint return, you are "one taxpayer" and you list all your combined income, credits, and dependents on that one return.  Joint filing is allowed even if one spouse doesn't work, and it generally has lower tax rates and better deductions.

If you live together but file separately for other financial reasons, then either parent (but not both) can claim any dependent that lives with them. 

If you are separated, and plan to file separate returns (married filing separate or head of household), then the first question is, where did the children physically live more than half the nights of the year?  If the children lived with you, but your (separated) spouse wants to claim them, that is allowable but you need to sign a release form.

More detail about your situation is needed to give a proper answer. 

[Hal_Al]

For more specific advice, you need to clarify your situation. In particular, does "husband" really mean ex husband or separated husband?. The money you hear about people getting for just filing a tax return claiming kids requires them to  have some earned income (wages or self employment). Without earned income, they are not eligible for the "refundable" Earned Income Credit or Additional Child Tax Credit.  Both credits are calculated on the amount of earned income you have. No earned income means no "refund". A small amount of earned income means a small refund. The child tax credit does not "kick in" unless you have at least $2500 of earned income.

So, $15K is enough to get money from the IRS for claiming kids (but will be  reduced if you have to file as Married Filing Separately).

Instead, you could allow the non-custodial parent to claim the children.  Non-custodial parents are allowed to claim the child tax credit, but not the Earned income credit.

Or you could do both. There is a special rule in the case of divorced & separated (including never married) parents. When the non-custodial parent is claiming the child as a dependent/exemption/child tax credit; the custodial parent is still allowed to claim the same child for Earned Income Credit, Head of Household filing status, and day care credit. This "splitting of the child" is not available to parents who lived together at any time during the last 6 months of the year; then only one of you can claim the child for any tax reasons. The tax benefits may not be split in any other manner.  As others have said, this doesn't work, if you are still legally married and have to file as Married Filing Separately. 

[kashyua]

Oh ok. We are not legally married, but we are culturally married if that makes sense. So, we do file separately because of that reason. I just wanted trying to understand because it's the first time I've not worked in 16 years. Thank you!

[VolvoGirl]

@kashyua   Do you live together?  Are they his kids too?  If you all live together he can claim the kids.  He might be able to claim you too if you made less than $4,700 for the year.   And you each have been filing Single, right?  

[Opus 17]

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@kashyua wrote:

Oh ok. We are not legally married, just the cultural way. That's why I called him my husband. But we file separately because of those reason's. I just wanted trying to understand because it's the first time I've not worked in 16 years. Thank you!

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If you are not legally married, then:

1. You are required to file if your income is more than $13,850, or if you had self-employment income from a side gig of more than $400.  You could file if you earned less, but are not required.  (You may get a refund of withheld amounts.)

2. If your partner is the bio parent of at least one of the children, he can claim them as dependents on his tax return.  If he pays more than half the cost of keeping up the house and claims at least one child, he can file as head of household which has lower taxes than single.  

4. If you had some income from working (but less than usual), the only way to know the absolute best way to file (which child to put on which tax return to get the best credits and biggest refunds) is to test different combinations.   You could file as single with 0, 1, 2, or 3 dependents, and your partner could file as single with 0, 1, 2, or 3 dependents, or can file as head of household as long as he claims at least 1 dependent that he is the bio-parent of. 

[VolvoGirl]

Oh and for Single you don't have to file if you only have W2 income under 13,850 (2023) but you can file to get back any withholding taken out in boxes 2 or 17.

Do you need to file a return?
https://ttlc.intuit.com/community/filing-and-paying-taxes/help/do-i-need-to-file-a-federal-return-th...

[xmasbaby0]

@Opus 17 If I am remembering this correctly---the original poster must have edited the question.  The original question said he/she was married and was wondering about which spouse could claim the children.  When the forum site allows users to change their questions after receiving replies it can become very confusing for all of us.

[VolvoGirl]

@xmasbaby0  I think that was another question.  

[xmasbaby0]

@VolvoGirl  You may be right.....but I believe I had a reason to ask if the user was married --- based on something that was in the question.  I guess only the original poster @kashyua can clear up whether the question was edited at some point.   

[VolvoGirl]

Whoa, that does sound different now.  I think it was about if he could claim the 3 children?  

[Opus 17]

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@VolvoGirl wrote:

Whoa, that does sound different now.  I think it was about if he could claim the 3 children?  

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It's disorienting to have the question changed but it doesn't really change the answers.  Unmarried, long term partner, 3 kids, stopped working in May.

1. It's ok to file a tax return as normal, even though your income is less.

2. How to divide the children between the two partners' tax returns is complicated and depends on who the biological parents are, among other factors. 

[VolvoGirl]

The original question shows up in my forum listing.  That's why I thought it hadn't changed.  

[xmasbaby0]

@VolvoGirl Bingo!  There it is!   Maybe proof I am not nuts---at least for now.  Thanks for finding that!