Minimum Income Rule for Married Filing Separately

[Dante612]

Hi guys,

Can someone please confirm for me that for "Married Filing Separately," anyone earning over $5 in 2024 has to file a tax return? I've seen this on numerous websites, but the woman I spoke to yesterday at H&R Block just shook her head and looked like she didn't know what I was talking about. Also, if true, why is it so low when all the other status categories have a much higher threshold? Thanks. 

[xmasbaby0]

If one of you earned only a few dollars why would you want to file married filing separately?  That does not even make sense.  You can file a joint return even if one spouse had little or no income.

If you were legally married at the end of 2024 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 $29,200 (+ $1550 for each spouse 65 or older)  for 2024. 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. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return.

 Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice since with online, you get one return per fee.

https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separ...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/income/getting-married-mean-taxes/L2Rgma...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/married-filing-separately-commu...

[Dante612]

Thank you, but I am asking about confirmation regarding the $5 minimum income requirement for Married Filing Separately. I am not saying I am necessarily going to file this way, but I need clarification on this issue.

[VolvoGirl]

What $5 min income rule?  Do you have a link?   Never heard of it.

And may I ask why you are filing separate returns?  Sometimes people don't realize the differences between filing  Joint and MFS.

Joint is almost always better.  Here's some things to consider about filing separately……

In the first place you each have to file a separate return, so that's two returns.  And if you are using the Online version that means using 2 accounts and paying the fees twice.  The Desktop CD/Download program would be better to use.

Many people think they come out better when filing Married Filing Separate but they are probably doing it wrong.  If one person itemizes deductions on Schedule A then the other one must itemize too, even if it's less than the standard deduction, even if it is ZERO!  And if you are in a Community Property state it can be complicated to figure out.

And there are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

And contributions to IRA and ROTH IRA are limited when you file MFS.

Also if you file Married Filing Separately up to 85`% of your Social Security becomes taxable right away even with zero other income.

See …….

https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-...

[Dante612]

Hi. Thanks for the reply. Maybe I am reading this wrong: https://www.irs.gov/individuals/check-if-you-need-to-file-a-tax-return "If your filing status is maried filing separately, file a tax return if your gross income is $5 or more."

[dmertz]

I'm sure that it has to do with the fact that if one spouse itemizes, the other spouse must itemize when filing separately.  A spouse with only $5 of income will owe income tax ($1) when they cannot use the standard deduction and they have no itemized deductions.  With less than $5 of income the tax is $0.