Disabled Dependent Spouse, file Head of household to claim?

[riuku]

I've been looking into this situation for a while, as the tax laws seem to change per administration. 

My disabled spouse lives with me, we typically file jointly.  I did find per Publication 524 for 2021 that one can claim their Disabled dependent spouse if filing separately and as "Head of household." 

Per my income, i've been claiming her as dependent for the past two years. She does not have an income outside SSDI which she does have taxes deducted from. 

[VolvoGirl]

I would just keep filing Joint.  I don't think there is any advantage to filing MFS or Head of Household.  And she would also have to file a separate return and all her SSDI will be taxable.  

What do you mean you've been claiming her as a dependent?  A spouse is never a dependent.  You just file Joint.  She should only be listed in the top section and not in the Dependent section. And have you been entering her SSDI SSA-1099 and withholding on your Joint return?

[EricE_CPA]

Hi Riuku

Good question.

I suggest you look at the following link

Tax Tips for Caring for a Disabled Spouse 

Not quite sure as to why you would want to file as Head Of Household with a standard deduction of $19,400 versus Married Filing jointly of $25,900

You still are able to claim Credit for care expenses while filing as Married Filing Jointly.

[SuziM]

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[riuku]

Yes but... there has to be some kind of Tax incentive here... Why would the IRS build a publication for claming a credit? 

Yes and No a spouse is definitely a dependent when you are required to care for them under special circumstance. See where i'm going with this?

[riuku]

Good point, these are the general considerations I am completely unaware of...

[EricE_CPA · Accepted solution]

Yes Riuku

When filing as Married Filing Jointly, in addition to the Credit for Care expenses and the Medical Expense deductions,  you should also look into

Schedule R: Tax Credit for Elderly or Disabled 

Your spouse being disabled, if under 65 can claim the credit if meets all three of these requirements to qualify:

1. You must have been permanently and totally disabled before you retired
2. You must receive taxable disability income during the year
3. You must be younger than your employer’s mandatory retirement age before the beginning of the tax year.

[riuku]

Thank you very much for this advice. It's taken me 10 years to get to this point, our local tax professionals wont give us the time of day. 🤗

[VolvoGirl]

I looked at that pub 524 Elderly & Disabled credit.  Most people don't qualify for that.  And you have to live apart to file separately and claim it.  I don't see where you are seeing a spouse is a dependent.  And you need a qualifying child to claim Head of Household and live apart from your spouse.

Did you follow the chart Figure A on page 3?  You might be reading a box wrong.