Do I file a return to include spouse’s SSDI income?

[DoninGA]

If you are married and filing as Married Filing Jointly then your spouse's Social Security Disability benefits are reported on your joint tax return.

The Social Security Administration will send a Form SSA-1099 for the benefits received in January.

Up to 85% of Social Security Retirement/Disability/Survivors benefits becomes taxable when all your other income plus 1/2 your social security reaches:

• Married Filing Jointly - $32,000
• Single or Head of Household - $25,000
• Married Filing Separately - 0

To enter Social Security benefits reported on form SSA-1099

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On Social Security (SSA-1099, RRB-1099), click the start or update button

Or enter ssa-1099 in the Search box located in the upper right of the program screen. Click on Jump to ssa-1099

[Hal_Al]

Note that there is a special rule that says SS becomes taxable at zero ($0) other income when Filing as Married Filing Separately (MFS). The calculation is a little complicated. But, a simple answer is: she does not need to file is she has less than $12,000 income, including all her SS.

You may be thinking that  filing MFS is going to save you money, because you don't have to add her income to your return. That thinking is usually wrong. The doubled standard deduction will wipe out all her income, on a joint return. But 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