My Wife, who is also a full time student, and I where married in June of 2018, prior to our married we lived separately, both on our own. Her mother has claimed her on her tax return as a dependent to get her education credits and tax breaks. My wife never lived with her mother throughout any coarse of 2018, and her former place of employment is sending out any more W2's nor is her School sending her an I-9 because her mother got them. How do I go about filing my taxes now?
For starters, it looks like your situation qualifies for one of the VERY VERY RARE exceptions where a married person can be claimed as a dependent on someone else's tax return. Here's the rules for the exception.
The Student:
- Must be under the age of 24 on Dec 31 of the tax year.
- Must have been enrolled for any one semester that started in the tax year.
- Must have been enrolled in a program of study that will lead to a degree or other credentialed certification.
- Must file as "married filing separate"
- The student, on their MFS return must select the option for "I can be claimed on someone else's return."
- The spouse, on their return must select the option to indicate their spouse (the student) can be claimed on another's tax return.
Both the student and their spouse must agree to this. If they do not, then flat out nobody can claim the student as a dependent on any tax return.
" her former place of employment is sending out any more W2's" implies the wife had income. She can't be her spouse's dependent
Also, if the above requirements apply and you both agree, your wife's income doesn't matter, as there is no limit.
There was a special circumstance prior to tax year 2018 where you could claim your spouse’s exemption if you filed a separate return, but this is no longer available for tax years 2018 – 2025.
References:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901139-can-i-claim-myself-or-my-spouse-as-a-dependent">https://ttlc.intuit.com/questions/1901139-can-i-claim-myself-or-my-spouse-as-a-dependent</a>
<a rel="nofollow" target="_blank" href="https://www.thebalance.com/can-one-spouse-claim-another-spouse-as-a-dependent-3973983">https://www.thebalance.com/can-one-spouse-claim-another-spouse-as-a-dependent-3973983</a>
You discuss it with your new wife and the two of you decide whether you want to fight this or get along with your new in-laws. It's your wife's decision. You cannot file a joint return without her consent (you cannot claim her as a dependent, at all).
If you decide to get along, you will each have to file as Married Filing Separately (MFS). Your wife will indicate on her return than someone else is claiming her.
If you want to fight it, you prepare a Married Filing Jointly return, claiming the education credit and everything your'e entitled to, and let the IRS sort it out. Based on the facts you describe, they will rule for you. Your e-file will probably be rejected, so you have to mail in a paper return.
See this post, for a full explanation of when the parents can claim her. You may want to show this to the mother to show why she can't do what she thinks she can. https://ttlc.intuit.com/questions/2938663-can-i-claim-my-daughter-who-got-married-on-december-19th-2015?jump_to=similar-questions