Question re: filing taxes when separated

[isis297]

NY state.

Could you tell me the proper, legal way to handle this situation?

Married couple was together with their 2 children last year from January through June. The husband worked. The wife did not. She started working the last couple of months of 2023.

Couple separated early July. Custody didn't become 50/50 until this month.

What is the right way to file taxes? She wants to file married jointly. He wants to file married separately.

If they do file separately, does one claim one child and the other claim the other child?

Thank you for your advice. You all are invaluable.

 

[Zigner]

They should review https://www.irs.gov/help/ita/what-is-my-filing-status

 

[isis297]

Thank you.

 

[zddoodah]

What is the right way to file taxes? She wants to file married jointly. He wants to file married separately.

As between these two statuses, there is no "right" or "wrong" way. It's a decision they should make jointly, although if the one who wants to file separately digs in his heels, there's really no way for the other to compel a joint filing.

If they do file separately, does one claim one child and the other claim the other child?

They could do one for each or either one claims both. They may want to run the numbers and compare to see what is most advantageous.

 

[LdiJ]

NY state.

Could you tell me the proper, legal way to handle this situation?

Married couple was together with their 2 children last year from January through June. The husband worked. The wife did not. She started working the last couple of months of 2023.

Couple separated early July. Custody didn't become 50/50 until this month.

What is the right way to file taxes? She wants to file married jointly. He wants to file married separately.

If they do file separately, does one claim one child and the other claim the other child?

Thank you for your advice. You all are invaluable.

If they are still legally married, they may file a joint return if the two of them agree to do so. If the divorce was final before 12/31/2023 then they may NOT file a joint tax return.

If they are still married they may file Married Filing Separately if that is what they prefer to do. However, it has to be Married Filing Separately, neither of them can claim Head of Household status because they did not live apart for the last full six months of the year. They would have had to have separated prior to July 1 in order for one of them to file Head of Household, and the only person who would have qualified to do that is the person with whom the children primarily lived during the separation.

It often works out better to file jointly in the year that a couple is separating. That does mean coming to an agreement as to how to share the refund, but overall the results are generally better.

As far as claiming the children are concerned, a court would normally order that claiming the children be split between the two parents. So one parent claiming one child and the other parent the other child. However, again, you lose some benefits to claiming children if you file Married Filing Separately, which is one of the reasons why it might be better to file a joint return for 2023 if the divorce was not final before 12/31/2023.