Do You Claim Your Spouse as a Dependent?
Understand IRS dependent rules for spouses and discover the specific tax advantages available to married couples when filing.
Under Internal Revenue Service (IRS) rules, a spouse cannot be claimed as a dependent on a federal income tax return. While this may seem counterintuitive for married couples, specific tax provisions and benefits are designed for married individuals, distinct from dependent claims.
Understanding Dependent Status
The IRS defines a dependent as either a “qualifying child” or a “qualifying relative.” A spouse does not meet the criteria for either category, preventing them from being claimed as a dependent. For instance, a spouse cannot be a “qualifying child” due to age and relationship requirements.
A spouse also fails the tests to be a “qualifying relative.” This is due to factors like the joint return test, which generally prevents a spouse filing jointly from being claimed as a dependent. Additionally, the gross income test for a qualifying relative requires the individual to have gross income below a certain threshold, which for 2024 is $5,050. A spouse supporting themselves would likely exceed this income limit. The support test also requires the taxpayer to provide more than half of the individual’s support, which a financially independent spouse would not meet.
Married couples commonly file using the “Married Filing Jointly” status. This status allows couples to combine their incomes and deductions on a single tax return and provides various tax advantages.
Tax Advantages for Married Couples
Married couples benefit from specific tax provisions that can reduce their overall tax liability. The primary filing statuses available are “Married Filing Jointly” and “Married Filing Separately.” Filing jointly typically offers greater tax advantages.
Filing jointly allows for a higher standard deduction. For 2024, the standard deduction for married couples filing jointly is $29,200, which is double the $14,600 available to those filing as single or married filing separately. This larger deduction can significantly reduce taxable income. Married couples filing jointly may also qualify for various tax credits often reduced or unavailable to those filing separately, such as the Earned Income Tax Credit (EITC), education credits, and the Child and Dependent Care Credit.
Filing separately might be considered in limited circumstances, such as when one spouse has significant medical expenses that would meet the adjusted gross income threshold only if calculated separately. Another instance could involve student loan repayment plans, where filing separately might result in lower income-driven payments. If one spouse itemizes deductions, the other spouse must also itemize, even if their itemized deductions are less than the standard deduction they would have received. Additionally, couples filing separately generally cannot take the student loan interest deduction.
Married couples can also leverage retirement savings strategies like spousal IRA contributions. If one spouse earns little to no income, the working spouse can contribute to an Individual Retirement Account (IRA) on behalf of the non-working spouse. For 2024, the combined contribution for a married couple filing jointly could be up to $14,000 ($7,000 per individual) or $17,000 if both are age 50 or older, provided their combined taxable income is at least equal to the contribution amount. This allows couples to save more for retirement while potentially reducing their taxable income.
Claiming Other Dependents
Other individuals can be claimed as dependents, generally falling into two categories: “Qualifying Child” and “Qualifying Relative.” Each category has specific tests that must be met.
A “Qualifying Child” must meet relationship, age, residency, support, and joint return tests. For instance, the child must be under age 19 at the end of the tax year (or under 24 if a full-time student), younger than the taxpayer, and must have lived with the taxpayer for more than half the year. They also cannot have provided more than half of their own support.
A “Qualifying Relative” is an individual who does not meet the “qualifying child” criteria but satisfies relationship, gross income, and support tests. The individual’s gross income for 2024 must be less than $5,050, and the taxpayer must provide more than half of their total support. Claiming these dependents can enable eligibility for various tax benefits, such as the Child Tax Credit, which is up to $2,000 per qualifying child for 2024, with up to $1,700 being refundable as the Additional Child Tax Credit. For other dependents, the Credit for Other Dependents may be available, providing a non-refundable credit of up to $500 per qualifying individual.