SSDI

[FletchIV]

My wife receives social security disability benefits and is 57 years old. I'm filling out her tax return as married, filing separately. I enter her income, and this is the only number in the system I have entered, and it states she owes over $1k. If SSDI is not taxable, why would she be subject to any taxation?

[xmasbaby0]

Sorry--you are very mistaken about her SS not being taxable.   Why are you filing separate returns?   You should be filing a joint return.    When you file MFS, 85% of her SS automatically becomes taxable.

If you were legally married at the end of 2025 your filing choices are married filing jointly or married filing separately when you prepare your 2025 return.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $31,500 (+ $1600 for each spouse 65 or older)  for 2025. You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return.

 Some of the disadvantages of filing separately include: 

You cannot get earned income credit, 

You cannot get education credits or deductions for student loan interest. 

You cannot get the childcare credit

You have a lower amount of income on which to base the refundable additional child tax credit

85% of your Social Security benefits will be taxable even with no other income 

The amount you can contribute to a retirement account will be limited.

Capital loss deduction is less than if you file jointly

You cannot get the $6000 senior deduction

You cannot get the deductions for overtime or tips

 If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI) and your returns become very complicated.

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice since with online, you get one return per fee.

https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separ...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/income/getting-married-mean-taxes/L2Rgma...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/married-filing-separately-commu...

[DoninGA]

If the SSDI is the only income being entered on the tax return and the filing status is Married Filing Separately then you may have taxes owed based on the amount of SS that was entered.  Any amount greater than the standard deduction would be taxable income.

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

Standard deductions for 2025

Married Filing Separately - $15,750 add $1,600 if age 65 or older

[MinhT1]

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

The threshold for MFS separately is 0, so up to 85% of your spouse's SSDI is taxable. It can be only be reduced by her standard deduction.