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Married live together but this year looked at filing separate as her business made more money than she expected leaving them with a 15,000 tax liability. He will show about 20,000 less income than her this year. 2 children. If he claims the children it will save them $1500.00 Did not know if there was an exception this year that he could claim them and not the higher wage earner. No day care expenses or any of that to worry about.
Michele
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Community Property State? If so, likely better to file jointly.
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Which test for claiming a dependent child do you think disqualifies the spouse with lesser income? There are only five of them.
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Not a community property state. I felt like if they were filing solely for a lower tax that the dependents had to be included on the higher wage earner. They naturally want him to claim them since that would lower their tax and they have always filed joint. New client with a real mess.I am trying to straighten out. On top of everything I am going to have to amend previous years corps returns where mistakes were made by former accountant. Yuck
thanks