two income marriage deduction

Forum|Forum|2 years ago
March 18, 2024
1 reply
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What type of income is considered for the two income marriage deduction? My husband is working but I'm a stay at home parent. I do pay into my kids 529 and came into the marriage with investments that earn interest. Can I take this deduction for the portion I'm putting in or is it only if I'm getting a pay check from an employer? Thanks!

TurboTax Deluxe Online

Vanessa A

Are you asking about a state deduction? If so, which state?

If it is Maryland then you just need to have income. It does not specifically say wages from work, it says income.

Is there a tax break if both spouses have income?

"Yes, you can claim the two-income married couple subtraction on line 14 of Maryland Form 502. This is a state-only deduction that reduces your taxable income. Married couples filing a joint return, when both have taxable income, may subtract up to $1,200 or the income of the spouse with the lower income, whichever is less. A worksheet is included in Instruction 13 to help you calculate the subtraction."

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Hal_Al

Employee

If Ohio:

To qualify for the Joint Filing Credit (JFC), you and your spouse must each have at least $500 of qualifying income and jointly file your return. "Qualifying income" is any amount included in Ohio adjusted gross income, other than the following:
●Interest;
●Dividends and distributions;
●Capital gains; AND
●Rents and royalties

But, then any schedule A deductions must be subtracted from each spouse’s income to see if you each still have $500. In addition any Federal adjustments must be subtracted. Common examples are an IRA deduction or student loan interest. Let's say the wife had $1500 of wages and paid and took a deduction for $1200 of student loan interest. She would only have $300 of net qualifying income and the couple would not get any JFC.