We are married and live together but decided to file separately. I claimed our child, and my spouse didn’t. What’s the deal with the rule about living apart for 6 months? Does it impact the child tax credit? I also read that EITC can’t be claimed if we live together, but does that apply to claiming the dependent and getting the earned credit for the child?
The rule about living apart for 6 months lets someone file as head of household if they’ve been separated for at least half the year, but that doesn’t apply here.
If you file as married filing separately, you can’t get the earned income tax credit. You can still get the child tax credit, though.
@Chandler
Thanks … will online software catch this mistake? I used one, and it showed earned income credit with qualifying child, even though I filed separately.
Micah said:
@Chandler
Thanks … will online software catch this mistake? I used one, and it showed earned income credit with qualifying child, even though I filed separately.
There’s an exception where if separation is due to abuse, you might qualify for EITC even when filing separately for one year. But it’s very specific.
Micah said:
@Chandler
Thanks … will online software catch this mistake? I used one, and it showed earned income credit with qualifying child, even though I filed separately.
You probably didn’t answer the question about whether you and your spouse lived together correctly. That’s why it’s showing EITC eligibility. You’re not eligible for it in your situation.
@Koa
How can I fix this now? Should I wait to amend, or can I do it before the IRS processes the return?
Micah said:
@Koa
How can I fix this now? Should I wait to amend, or can I do it before the IRS processes the return?
If you’ve already filed, you’ll need to wait for the IRS to process it first. They won’t start processing returns with EITC claims until mid-February. Once they process it, you can amend. When you do get your refund, don’t spend it because you’ll likely need to pay it back if it includes the $3,941 from Line 27.
Why are you filing separately? Filing jointly is usually better for married couples.
@Koa
Thanks for the advice! We didn’t have a specific reason … I just didn’t know much about taxes and made a mistake when answering the question. Even if I amend it, I guess the credit is already gone.
@Micah
You’ll need to amend because you’re not entitled to that credit. By amending, you’re letting the IRS know you realize the mistake and are correcting it. Did your spouse already file their return?
@Koa
Technically, I’d be eligible for the credit if we filed jointly, but since we already filed separately, will amending fix this? And yes, we both filed.
Micah said:
@Koa
Technically, I’d be eligible for the credit if we filed jointly, but since we already filed separately, will amending fix this? And yes, we both filed.
If you amend to file jointly, it should fix the credit eligibility. But it might take some time to process.
You’re probably better off filing jointly unless you move apart and one of you can claim head of household.
I made a mistake. The taxes are showing a refund with EITC because of a software error. We’re not divorced or separated. The only reason I filed separately is because of my wife’s income situation. The software suggested that separate filing might give us a better outcome. Another software showed that if we hadn’t lived together for 6 months, EITC would apply. But since we did live together, I guess the credit isn’t valid.
@Micah
What’s the income situation that made you think filing separately would help? If she earns a lot or very little, filing jointly is usually better.
Chandler said:
@Micah
What’s the income situation that made you think filing separately would help? If she earns a lot or very little, filing jointly is usually better.
She earns very little. I answered the question about living together incorrectly.