Which option are you and your spouse choosing this year? - Married Filing Separately

[hbnguyen26]

Hi, 

I was married at the end of 2020. For 2020 taxes, my parents' spouse wants to file him as a dependent in their 2020 taxes. So I have to choose the Married Filing Separately option. There is a question that asked "Which option are you and your spouse choosing this year?" How can I answer this?

Thank you so much for all the help! 

[xmasbaby0 · Accepted solution]

What?  No.   A spouse cannot be claimed as a dependent.   File a joint return.  Wait---do you mean your spouse's parent wants to claim him?    I think you stated that backwards and it is confusing.    It sounded like you were filing a return for someone's parents.  

Sometimes parents of a newly married person still want to claim them as a dependent if the person was a college student and they want the education credits.   It is permitted IF you and your spouse agree to file married filing separately.   But filing that way has distinct disadvantages for YOU.   And.....your spouse will not get his own stimulus check if he is claimed as a dependent.   

If you are going to file separate returns----it asks if you were married.  You say YES.   Then it asks if you want to file together with your spouse.  You say NO.  It will ask   We just need a few more details..... It will ask if someone can claim your spouse as a dependent ---say YES.

But here is some information you need to understand.......

If you were legally married at the end of 2020 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 $24,800 (+$1300 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.

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...

[hbnguyen26]

Thank you so much for your response. 

You are correct that my spouse's parent wants to claim him because he was a college student in 2020, and they want the education credits.

They still asked me this question "Which option are you and your spouse choosing this year?" which one should I choose? should I ask his parents?

Thank you again 

[xmasbaby0]

Are you asking about itemizing or using standard deduction-----my best guess would be standard deduction---but ask to be positive.

Best Wishes!