Filing Status-one in nursing home

[Beth]

Like many, we are now dealing with elder care issues, and have lots to learn!

FIL is now in nursing home. MIL still at home. They did not have sufficient income to have to file or pay taxes in past recent years as joint filers.

Now that he is in a nursing home, do they need to consider filing as married but seperate? Or can they keep joint status?

Taking it one step further, MIL just had a stroke, and may end up in nursing home this year yet. If so, and they are at same facility but sperate rooms, then what would filing status be?

Appreciate any help, as I prepare taxes for self and family members only.

[Brian EA]

Mfj

It does not matter where they live. They can still file jointly.

[AJsTax]

Brian is correct,

and to expand on that a little, you most likely do not want to consider MFS because that forces 85% of the SS benefits to become taxable. So then you would have to use medical expenses to offset the income.
I have 2 couples that live in different states and still file MFJ because of those issues.
Do not upset the applecart on a return that does not even have to be filed if that part continues to be true.

[Beth]

Thank you- your assistance and reassurance is appreciated!

[gkaiseril]

You may also find couples that maintain residence in different states for tax reasons or as they prepare to retirement, obtaining education, military service or other job requirements. When this occurs they are still considered married and and the MFS is an option and not required.

We should also be aware that the federal filing status does not force That state filing option. This is not an issue in Florida as there is no state income tax there.

I believe when you look further into this, being in a nursing home is considered a temporary absence and not a change of address, unless other additional actions are taken to establish the nursing home as the legal residence.

[ChEAr$]

But if MFS status and they didn't live together in last six months of the year, 85% of Social security is still taxable?

[Gary2]

But if MFS status and they didn't live together in last six months of the year, 85% of Social security is still taxable?

No. If they file MFS and lived together at all during the year (e.g. sleeping over Jan. 1, leave the morning of Jan 2), then 85% is taxable.

This is an example of a rule that should never be done from memory unless you see it frequently. There are just too many rules that are "almost the same" to trust to brain cells.

[FEDUKE404]

EXCELLENT point!

I have long since learned not to rely on memory for little used facts. This "fine print" about MFS and taxability of Soc Sec benefits is a classic example.

We've each encountered the tax person who "knows it all!" until someone eventually makes him/her eat a bit of humble pie.

There are way too many "at least" or "some of" or "entirely" or "at any time" or the classic related "5 months/6 months issues" in the IRS rules that a prudent preparer will very carefully pull out the rules to be sure in the uncommon cases.

I even find myself going through the interview, and reading carefully, for those "on the edge" for EITC, child tax credits, and the like.

(Also my memory is not as sharp as it once was - but I just do not clutter it up with needless details best found elsewhere.)

FE

[Gene V]

No. If they file MFS and lived together at all during the year (e.g. sleeping over Jan. 1, leave the morning of Jan 2), then 85% is taxable.

This is an example of a rule that should never be done from memory unless you see it frequently. There are just too many rules that are "almost the same" to trust to brain cells.

I think you reading "ChEar$" statement wrong. the answer should be yes. He is agreeing with you. He or she just didn't expand on the answer.

Originally Posted by ChEAr$
But if MFS status and they didn't live together in last six months of the year, 85% of Social security is still taxable?

[appelman]

Speaking of myths

The widely quoted "conventional wisdom" is that for MFS living together, 85% of social security is taxable. This is only true if there is a lot of additional income. In the limiting case, where the only income is from Social Security, 42.5% of it is taxable! If you don't believe it, just go through the worksheet.

[ChEAr$]

In my one reply above I was simply asking a question and not stating any facts. Hope no one thought otherwise.

But if one spouse has been all year in a nursing home with no hope of ever coming out again (except feet first), how can that be a temporary absence from home?
IMWTK.

[appelman]

I would construe

I would construe that as living apart.

[oceanlovin'ea]

Their choice

But as long as they are married, they have the choice to file MFJ if they choose to do so, don't they?

They are only apart because of the health of one spouse.

Since they have not been required to file for years, I would not begin filing tax returns for them now. As far as IRS is concerned, they are no longer required to file. So I would just leave them in that tax situation.

There is nothing that requires them to be considered MFS.

Linda

[Bees Knees]

Any tax on Social Security Benefits would be voluntary

This is a case of blowing something way out of proportion.

The original post is talking about a married couple whose income is below the filing requirements for MFJ.

The question is, now that they live apart because of one or both going into a nursing home, do they have to file MFS?
The answer is simply no. MFJ does not require that both spouses actually have to live together. MFS issues are irrelevant since they are not required to file MFS. End of story.

Now if you want to talk theory, you could theorize that a married couple below the filing requirement could voluntarily choose to file MFS and thus cause Social Security Benefits to be taxable. However, if someone did choose to file MFS, I would say the payment of tax on Social Security Benefits is still only voluntary, since one could always amend and change MFS to MFJ, thus voiding the requirement to pay tax on Social Security Benefits.

[JG EA]

In my one reply above I was simply asking a question and not stating any facts. Hope no one thought otherwise.

But if one spouse has been all year in a nursing home with no hope of ever coming out again (except feet first), how can that be a temporary absence from home?
IMWTK.

It is though. Hope springs eternal. What if there is a miracle cure? So the intent is that the person will come back home if he is able. He is not able now, but that doesn't mean it will be viewed as having moved.