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Returning Member
posted Mar 16, 2021 11:23:30 AM

Will my spouse qualify for the unemployment tax waiver if she makes less than the AGI limit and we file MFS? (We got married in 2020 but our combined AGI is over).

My spouse received unemployment in 2020 and her income is below the AGI for the unemployment tax waiver to qualify for the $10K deduction. We got married in 2020 and if we were to file MFJ, we'd be over the AGI limit. If we file MFS, can my wife claim the unemployment tax waiver since her AGI alone is below the limit?

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1 Replies
Level 15
Mar 16, 2021 12:09:31 PM

Yes.  However, be sure to actually test your tax returns both ways before filing.  You may pay more taxes filing MFS, and some deductions and credits are reduced or disallowed (like the childcare credit, dependent care FSA, eligibility for IRA contributions, and some other things).  Also, be aware that if one spouse itemizes deductions, both spouses must itemize, even if one spouse claims the deductions and the other spouse claims zero amount. You can't stack all the deductions on one spouse and the other claim the standard.