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

Forum|Forum|7 years ago
June 4, 2019
5 replies
3 views

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?

Best answer by user17695451654

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

user17695451654

Level 5

What state are you residents?

jay-ferrisAuthor

Level 2

Texas

jay-ferrisAuthor

Level 2

Thanks!

user17695451654Answer

Level 5

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.

Here is some additional information for you as well:

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

SweetieJean

Alumni - Champ

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