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clarenceonwhidbe
New Member

Should we file separately as we are retired and income is SS, Ira's Annuity interest,dividends, and wife sold 1000 shares of microsoft? We use standard deduction.

 
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Accepted Solutions
Coleen3
Intuit Alumni

Should we file separately as we are retired and income is SS, Ira's Annuity interest,dividends, and wife sold 1000 shares of microsoft? We use standard deduction.

Probably not. One reason is that if you live together, your social security becomes taxable at $0. Also, there are many disadvantages.

Regarding SSDI taxable income concerns, none of your Social Security disability income (SSDI) is taxable if half of your SSDI plus all your other income is less than:

  • $25,000 if you filed as single, head of household, or married filing separately, and you and your spouse lived apart all year
  • $32,000 if you’re married filing jointly
  • $0 if you’re married filing separately, and you and your spouse lived together at all during the year


There probably is no benefit to Married Filing Separately in your case.

Although there is no one answer since every situation is different, generally filing jointly will give you a bigger refund or less taxes due. When you file separately, your tax rate is higher and you won't be able to claim:

 

On top of that, if you live in the community property states of Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you have to deal with community property allocations and adjustments, which adds extra work and complexity to your tax preparation chores.

Tip: Only taxpayers who were still legally married as of December 31, 2017 are able to file as marrieds, whether jointly or separately.

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1 Reply
Coleen3
Intuit Alumni

Should we file separately as we are retired and income is SS, Ira's Annuity interest,dividends, and wife sold 1000 shares of microsoft? We use standard deduction.

Probably not. One reason is that if you live together, your social security becomes taxable at $0. Also, there are many disadvantages.

Regarding SSDI taxable income concerns, none of your Social Security disability income (SSDI) is taxable if half of your SSDI plus all your other income is less than:

  • $25,000 if you filed as single, head of household, or married filing separately, and you and your spouse lived apart all year
  • $32,000 if you’re married filing jointly
  • $0 if you’re married filing separately, and you and your spouse lived together at all during the year


There probably is no benefit to Married Filing Separately in your case.

Although there is no one answer since every situation is different, generally filing jointly will give you a bigger refund or less taxes due. When you file separately, your tax rate is higher and you won't be able to claim:

 

On top of that, if you live in the community property states of Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you have to deal with community property allocations and adjustments, which adds extra work and complexity to your tax preparation chores.

Tip: Only taxpayers who were still legally married as of December 31, 2017 are able to file as marrieds, whether jointly or separately.

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