Image courtesy of Pixabay.com A couple of weeks ago I wrote a post about whether or not a married couple can choose to file a separate return where one spouse claims the other spouse as a dependent. The answer is yes, if the spouse being claimed as a dependent: Has no gross income, and [...]
This question comes up now and then: My spouse is disabled and has no income; can we file as married filing separately and I claim him/her as a dependent on my tax return?
At first blush, the answer to the question posed in the title of this post would seem to be yes. Unfortunately, the answer is actually “no.”
Iowa allows an exclusion of up to $12,000 of pension/retirement account income for taxpayers age 55 and older. When taxpayers file separate tax returns, the $12,000 exclusion might need to be allocated.
Iowa allows a deduction in full for health insurance premiums paid with after-tax dollars. This deductions is available to everyone, even those who don't itemize. Here's how this deduction works for people filing as married filing separately.