Q. If I am married to someone who receives social security or social security disability income ( SSDI) and file married filing separately, will their benefits be counted as taxable income?
A. Yes.
Social security (including SSDI) becomes taxable when your income, including 1/2 your social security, reaches:
Married Filing Jointly(MFJ): $32,000
Single or head of household: $25,000
Married Filing Separately and lived with your spouse at any time during the tax year: $0
You may be thinking that filing Married Filing Separately (MFS) is going to save you money, because you won't have to add your spouse’s income to your return. That doesn't work. There is a special rule that says SS becomes taxable at zero ($0) other income when Filing as MFS.
The doubled standard deduction will usually wipe out most of the spouse’s income, on a joint return. And you will still get the use the lower joint filing rates.
Before making a decision to file as MFS, you should run test returns and compare. You can use this tool: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1
SSI (Supplemental Security income) is different from social security income. It's a form of welfare and is not taxable or reportable. If you get an SSA-1099, you do not have SSI.
