topic Spouse has medical disability and unable to work BUT unable to get social security disability. Can I identify them as DISABLED for tax purposes ? in Deductions & credits

Spouse has medical disability and unable to work BUT unable to get social security disability. Can I identify them as DISABLED for tax purposes ?

cmkinman — Thu, 06 Feb 2020 12:46:42 GMT

Re: Spouse has medical disability and unable to work BUT unable to get social security disability...

HelenC12 — Thu, 06 Feb 2020 13:19:15 GMT

If your spouse is under age 65 and not receiving taxable social security disability, your spouse will need to have a physician's statement to receive tax credits for the disabled.

Per IRS Publication 554 Chapter 5 Credit for the Elderly or the Disabled : page 28:

Permanent and total disability.

You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition.
A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death.

In the Personal Info section of TurboTax, you may enter "Disabled" under occupation.

Re: Spouse has medical disability and unable to work BUT unable to get social security disability...

Hal_Al — Thu, 06 Feb 2020 13:44:23 GMT

It probably doesn't matter, for taxes.

There is a credit for the elderly or disabled (you don't have to be both). But because it has not been adjusted for inflation since 1983, very very few people qualify. If you qualify, TurboTax (TT) will automatically calculate it. It goes on Schedule 3, line 6 (2019). Box c should be checked and “Sch R” placed on the line next to that box. It is not a refundable credit. That is, you must have a tax liability to offset to get the credit. Very few people, with that little income have an actual tax to offset.

Having any social security income at all works against you. Essentially your potential credit is reduced by any tax you "shoulda paid” on the untaxed Social security income. If you have more than $5000 social security ($7500 Married Filing Jointly and both are elderly or disabled) or VA benefits you will not qualify for the credit.