Claiming mother but can father also file jointly with her?

[NY718]

Hello,

I have been supporting my mother through the pandemic as she was not working. She has $0 income for 2020. If I claim her as my dependent, should my father also file jointly with my mother or should my father file married but single? What would be the pros and cons for him to file either way? I would be unable to claim my father as his income is above the $4,000 limit. Thank you in advance! 

[xmasbaby0]

You cannot claim a dependent who files a joint return with a spouse.   Why are you only wanting to claim your mother?   Do your parents live apart?  Or together?   There is no such thing as filing "married but single" so you must mean married filing separately.   

Share some other details----what income do your parents have?   If they file a joint return they are eligible for the stimulus checks.   If you claim your mother as a dependent she is not eligible for any stimulus checks at all.  And what you "get" for claiming her would be a $500 credit for other dependents and perhaps the $1400 3rd stimulus check.

You say you have been supporting your mother---did you pay for over half her support?  Or was she supported by your dad as well?   You say she was not working...Did she receive any unemployment?  

[macuser_22]

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@NY718 wrote:

Hello,

I have been supporting my mother through the pandemic as she was not working. She has $0 income for 2020. If I claim her as my dependent, should my father still file jointly with my mother or should my father file married but single? What would be the pros and cons for him to file either way? I would be unable to claim my father as his income is above the $4,000 limit. Thank you in advance! 

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You cannot claim a dependent that files a joint tax return.

Married filing separately is the worse way to file since the standard deduction is half of a joint return.   The most yiu can get is the $500 other dependent credit.

If you file MFS (Married Filing Separately) keep in mind that there are several limitations to MFS.  Married filing Jointly is usually the better way to file.
 
A few of those limitations are: (see IRS Pub 17 for the full list

https://www.irs.gov/pub/irs-pdf/p17.pdf page 21

1. Your tax rate generally is higher than on a joint return.
2. Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return.
3. You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. For more information about these expenses, the credit, and the exclusion, see chapter 32.
4. You cannot take the earned income credit.
5. You cannot take the exclusion or credit for adoption expenses in most cases.
6. You cannot take the education credits (the American opportunity credit and lifetime learning credit) or the deduction for student loan interest.
7. You cannot exclude any interest income from qualified U.S. savings bonds you used for higher education expenses.
8. If you lived with your spouse at any time during the tax year:
a. You cannot claim the credit for the elderly or the disabled, and
b. You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received.
9. The following credits and deductions are reduced at income levels half those for a joint return:
a. The child tax credit,
b. The retirement savings contributions credit,
10. Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return).
11. If your spouse itemizes deductions, you cannot claim the standard deduction. If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return.

- If you live in a community property state you must allocate community income between both spouses..
-
- Community property states.   If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. See Publication 555. http://www.irs.gov/publications/p555/index.html

 
See this TurboTax article for help with this.
https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

[NY718]

I apologize, I meant to state "married but filing separately."

I would not be able to claim my father as he made above the $4,300 to be claimed as a dependent. My mother was not able to claim unemployment. Thank you for the insight! 

[ColeenD3]

Yes, you can claim your mother if they file separately. If you father was over the limit for income but still made little money, filing separately might not hurt. Depending on their age, one important factor is that if either collects social security, it all becomes taxable if they live together but file separately.

[NCperson]

@NY718  this is the most important line of @ColeenD3 's response is in bold below.  This could be very expensive if this is the case as the taxes on the social security could be much larger than the benefit ($500 credit) you'd receive  

Depending on their age, one important factor is that if either collects social security, it all becomes taxable if they live together but file separately.

96% of married couples file joint because the tax laws motivate that behavior. this is a good example of that