If my wife didn’t work in 2018, how do I ensure she’s tax exempt since I can’t claim her as a dependent?

[xmasbaby0 · Accepted solution]

You file a joint return.  A spouse is never a dependent. 

If you were legally married at the end of 2018 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $24,000 (+$1300 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

[quasars112]

The $24,000 standard deduction you referenced above if we file jointly, is that an automatic standard deduction, or is there a CAP where it may not apply?  We’re filing jointly based on the earlier advice, but I don’t see that standard deduction applied for us in TurboTax.  It shouldn’t matter if our W4 indicates that we’re married at the beginning of the year, right?

[quasars112]

The $24,000 standard deduction you referenced above if we file jointly, is that an automatic standard deduction, or is there a CAP where it may not apply?  We’re filing jointly based on the earlier advice, but I don’t see that standard deduction applied for us in TurboTax.  It shouldn’t matter if our W4 indicates that we’re married at the beginning of the year, right?

[xmasbaby0]

You will see the standard deduction on line 8 of your Form 1040.  Your W-4 is just for your employer so they take out the amount of tax you want them to withhold.  It does not dictate how you file your tax return.

Your standard deduction lowers your taxable income.  It is not a refund 
2018 Standard Deductions:
Single   $12,000  (+ $1600 65 or older)
Married Filing Separately    $12,000  (+ $1300 65 or older)
Married Filing Jointly  $24,000  (+ $1300 each spouse 65 or older)
Head of Household  $18,000  (+ $1600 65 or older)

Look at line 8 of your Form 1040 to see your standard or itemized deductions.


Best Wishes!