Tax questions & who can file children

Here’s the scenerio:

Husband and wife still live together, but wife intends to leave. She has already moved all her things out of house. Husband learned she filed head of household and claimed BOTH of their children on her income tax (and prob got all the child care credits). She does not even work and she got a $3,800 refund.

First of all, is filing head of household LEGAL? She doesn’t work, and he has always paid for EVERYTHING. And they have never lived apart.

Secondly, can she claim both kids without the consent of the husband?

If she has done this illegaly, what can husband do? Can he report her to the IRS? He has filed a tax return “married, filing separately”.

Any advice would be appreciated.

Specific tax advice is beyond the scope of this forum, but I can say that a parent is entitled to claim the children if they live with them for most of the year (if the parties are separated). If you were living together, and the only wage earner in the home, she should not have filed as head of household. I suggest you contact your tax preparer for advice concerning your return.