Can A Married Couple File Separately For Dependent Care Credit And Child Care?

In summary, the Child and Dependent Care Credit is a tax credit that can be claimed by married individuals filing separately. However, if you are legally separated or living apart from your spouse, you may be able to file a separate return and still claim the credit. If you want to file MFS, you can each claim one of the children. To claim the credit, you must check the box on line A when you file MFS.

To claim the credit as a married couple, you must file married filing jointly. However, the primary custodial parent may claim the credit if the couple is legally separated. In 2021, the credit was fully refundable if the taxpayer, or their spouse if married filing jointly, had a principal place of abode in the United States for your spouse. Parents can receive up to $3,600 for every child under 6 and $3,000 for kids between 6 and 17. Married couples filing separately are only eligible for $1,800 and may be able to claim the credit if you paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work.

The rule is that the parent with the higher AGI has to claim the child if they lived equally with both parents to be eligible for the child tax credit. If a taxpayer is married at the close of the tax year, the child and dependent care credit is allowed only if the taxpayer and spouse file a joint return. If you’re married filing separately, the child tax credit amount qualify for is reduced from what you would receive if you had filed jointly. Couples that are married filing separately may not take the Child Care Tax Credit/Dependent Care Credit.