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March 29, 2023
Question

If filing separately and she is unemployed, can she claim the child tax credit?

  • March 29, 2023
  • 2 replies
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    2 replies

    March 29, 2023

    no if she has no taxable income for 2022. 

    Employee
    March 29, 2023

    No.   In order to get the child tax credit you must have income earned from working.  The rules for the CTC changed for 2022 and reverted to the "old" rules.   And if you file MFS you cannot get EIC or the childcare credit.

     

    Why are you filing separate returns?  If you are married with children that is usually the worst way to file.

     

    If you were legally married at the end of 2022 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 $25,900 (+$1400 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-separately

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**