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New Member
posted Jun 4, 2019 4:49:38 PM

I work and my wife is retired. Is it better to file separately if my wife is now collecting Social Security?

My wife earned 9,000 outside her social Security Benefits. Combined she earned just over $20k.  I make well over $150k.  IS filing jointly better, or can we avoid getting taxed on her SS by filing separate?

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1 Best answer
Level 3
Jun 4, 2019 4:49:44 PM

Since you live in Texas and Texas is a community property state, it's unlikely that filing Married Filing Separately will be better than jointly. 

This is because in a community property state each spouse is considered to make 1/2 of ALL the income, even if one spouse earned it all. In  your case this means that you would report 1/2 of your spouse's income ($10k) and 1/2 of your income ($75), and she would do the same. 

Here is some additional information for you as well: 

https://ttlc.intuit.com/replies/3301943

5 Replies
Level 3
Jun 4, 2019 4:49:39 PM

What state are you residents?

New Member
Jun 4, 2019 4:49:41 PM

Texas

New Member
Jun 4, 2019 4:49:42 PM

Thanks!

Level 3
Jun 4, 2019 4:49:44 PM

Since you live in Texas and Texas is a community property state, it's unlikely that filing Married Filing Separately will be better than jointly. 

This is because in a community property state each spouse is considered to make 1/2 of ALL the income, even if one spouse earned it all. In  your case this means that you would report 1/2 of your spouse's income ($10k) and 1/2 of your income ($75), and she would do the same. 

Here is some additional information for you as well: 

https://ttlc.intuit.com/replies/3301943

Level 15
Jun 4, 2019 4:49:46 PM

can we avoid getting taxed on her SS by filing separate?

No. If you're married and file a separate return, the threshold described below is zero.  In other words, her Social Security will likely be taxable, regardless of her income.

https://www.fool.com/retirement/general/2016/04/30/is-social-security-taxable.aspx