Anyone who has ever filed taxes before with their spouse knows that the best way to save money is to file jointly. Filing jointly allows you to claim more credits and most importantly it takes into consideration both you and your spouse’s income. While it is often suggested that couples should file jointly there are some situations in which couples choose to file separately.
Filing separately if you have children could be a bad thing if you’re hoping to rely on the tax credit you get for having children. If you and your spouse decide to file a joint tax return, a child can only be a dependent by being claimed by one parent. This is also only possible if the child doesn’t provide half of their own financial support and reside with you for more than half the year. This only applies to children under the age of 19, or under the age of 24 if attending school full time.
Tax experts continue to stress the importance of just how much you lose any time you choose to file separately from your spouse. While losing the child tax credit may be the biggest thing you lose when you file separately, especially when you have children, you also lose other credits that may impact just how much refund you receive at the end of each and every year.
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