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Q. Who gets the Dependency Exemption if we're married but filing our taxes separately? |
Dear Donna,
My husband and I have only been married for 5 months but we have a 15-month-old child. The relationship is in shambles and we argue about everything. So much so that he has decided to file taxes separately this year (our first year of marriage) to be spiteful. How can I convince him to file jointly? He earns about 100k and I earn about 60k. If we file separately, who will claim our child as a dependent? He pays the rent and utilities. I pay daycare and child-related activities. I want to have the upper hand on taxes. Is it better to file head of household or claim my son as a dependent? I imagine I would not be able to file both and would have to "concede" on one or the other? I'm totally stressed. Please help. ~Tax Dilemma
Dear Taxed,
You are right--it is relationship issues that are being played out in this struggle over how to file your tax returns. Firstly, get to a neutral tax preparer and have him or her "run the returns both ways." This means the tax preparer will compute your taxes both as Married Filing Separately and as Married Filing Jointly. Usually there will be a monetary advantage for you both to file jointly. If your husband still does not agree to file jointly, then you must file separately because a person cannot be forced to file jointly.
You are married so you don't qualify for "head of household" status (for which you must be considered "unmarried"). That leaves the question of who can claim the Dependency Exemption for your child. Since your child lived with both of you all year, both of you qualify to claim the Dependency Exemption. But--no surprise--the IRS does not allow double counting of dependents! You and your husband can agree that you will claim the exemption. If there is no agreement and BOTH you and your husband claim your child as an exemption on your separate returns, then the IRS will apply a "Tie Breaker Rule" and give the exemption to the parent with the highest income, since that gives the most value to the exemption. This means that your husband, earning $100,000 to your $60,000 would get the exemption.
Now, about those relationship issues...Your very next appointment should be to a good Marriage and Family Therapist, either with your husband or alone. You and your husband obviously are both breadwinners and it seems that you both desire an amount of independence within your marriage. You'll want to explore how to structure your relationship so that you can peacefully share the power and responsibilities. A good counselor can help you "customize" your marriage so that it suits you both, and your child will benefit as well.
Good luck!
DonnaThis article is not legal advice. You should consult an attorney if you have legal questions that relate to your specific divorce.
