Married, filing separately, with a stepchild.

[642761142_05367]

Confused. I am married to my stepchild's mother. We intend to file separately for the 2013 tax year. Do I claim my stepchild as a dependent? Is my wife able to claim the child as dependent too, when she files separately? When the return talks about allowing/declining the child's "other parent" to claim her as a dependent, is it referencing my wife - my stepchild's mother - or our child's natural father?

[Texas Roger · Accepted solution]

The first question I would ask is why you intend to file separately for 2013?  There are many disadvantages to filing separately. Tax rates are higher. Most credits are not available. It is almost always better to file married filing jointly.

When TurboTax asks about the child's other parent, it is most likely referring to the natural parent in the situation where the natural parents of the child are separated, divorced or never lived together. In such cases, divorce decrees or other legal agreements can allow the non-custodial parent (who the child did not live with more than half the year) to claim the dependency exemption for the child. In some cases the custodial parent (who the child lived with more than half the year) must give the non-custodial parent a signed form 8332 or similar statement allowing him or her to claim the exemption. So the dependency exemption must be determined.

The custodial parent who the child lived with more than half the year can get certain tax benefits for the child who they claim as a qualifying child regardless of whether they claim the dependency exemption or not. Only one of the persons who the child lived with can claim the qualifying child benefits.

[LorieS]

Hello,

A child's dependency exemption cannot be claimed by more than one person. So if your wife chooses to claim the child you cannot. In cases where children are being included on a tax return, it is usually best not to file Married Filing Separate (MFS). The credits and deductions tend to be less.  If you live together MFS or Married Filing Joint (MFJ) are your only legal tax statuses. You may wish to reconsider filing separate.

Thank you for choosing Turbo Tax. Lorie

[cleandreams14]

I apologize as this is not a reply but a question. I don't know how to get on here to ask a question, but it is along the same line. My son has shared parenting and is married to a woman with a couple kids. They are now separated (just in the last month). They are filing Married filing separately and this is his year to claim his son. She claims her kids every year. How do they go about this. Usually they file jointly but she is just really giving him a raw deal (adultery) and he worries she won't give him his share of the tax return if they file joint. Can he claim his son and she claim her kids if they file separate? Or should they do it completely different?

[Texas Roger]

Filers usually pay more total taxes filing separately than filing jointly. Yes he can claim his son and she can claim her children on Married Filing Separately tax returns. There are credits that each of them may lose including the Earned Income Credit, American Opportunity Credit for education expenses, and they will each only get 1/2 of the child tax credit for children under age 17 that they would have received had they file Married Filing Jointly. If one chooses to itemize deductions rather than take the standard deduction, both must take itemized deductions. If this is the only way for them to agree to file, these are most of the consequences. 

By the way, it is almost always better just to start a new thread rather than tack on to an old thread.

[cleandreams14]

Thank you. One of her kids is 18 and they don't itemize so the consequences aren't that bad. Thank you. I will tell him

[cleandreams14]

Also I couldn't find a way to start a new thread