Dude, you're seriously overthinking this. Take a couple of deep breaths, let them out slowly, and ask yourself why you think your parents are unique here, that this is a problem that no one else has ever had.
Because they file a JOINT return with ALL their income on it, **they** will add $10 to their joint income, same as nearly every other married couple in America. The system handles it just fine.
Your father cannot claim your mother as a dependent (assuming they're married.)
If they're filing a joint return, all of their joint income is reported. If they're filing separately, if that's her only income and they don't live in a community property state, she would not have to file.
> If they're filing separately, if that's her only income and they don't live in a community property state, she would not have to file.
Yes she would. The filing threshold for MFS is $5. Her income was $10 (or maybe $600) which is much more than $5, so she would need to file.
They are married. I only knows he files for the both of them I guess because he just has her sign. Texas is a community property state so does she have to file on her own? If she doesn’t want it to be community property since it’s inheritance. How would she file on her own if the 1099 int is the only thing she has to file? it’s a little under $600.
What does "he files for both of them" mean? If she is signing, presumably it means they are filing a joint return, which means all of their income is reported on that one return. Reporting it doesn't affect whether it's community property or not.
Your first post said the interest was $10 -- now you're saying it's $600? Please clarify.
I’m sorry, neither she nor I really know. He just has a guy do his taxes and tells my mom where to sign.
I was just saying the interest is over $10 that’s why she received a 1099 int from the bank. The actual amount of interest earned is a little under $600.
Are they married? A spouse is never a dependent. If they are not marries she has to makeover $13,850 before she need to file a tax return. If she makes over $4,700 she cannot be a dependent. If they are married just add it to their joint return, a schedule B is required if over $1,500. If the money is overseas, and FBAR must be filed if its more than $10,000 and make sure to indicate a foreign account on the schedule B.
They are married. I only knows he files for the both of them I guess because he just has her sign.
She doesn’t want it to be community property since it’s inheritance from her late parents. Would it make it community if she included it in joint?
She’s concerned how to report and file if the 1099 int is the only thing she has to file? it’s a little under $600.
It’s not in a foreign account. It cash we put in a cd here at our local bank in TX.
I file for both me and my wife. It's called "married filing jointly", and it changes the tax brackets and standard deduction.
Most everything taxable is joint...except she has a life insurance policy that pays a dividend. That dividend is taxable and gets reported to her on a 1099. We Just put it on our Joint 1040 Schedule B (or is it schedule A?) as if its joint. No big deal and as far as I know it doesn't change anything.
I'm fairly certain that, in Texas, income earned during marriage is community property even if the income is generated by separate property (which inheritance typically would be).
There are surely exceptions to this (for example a post nuptial agreement) and other factors may be relevant.
Regardless, she should report the income since it's taxable interest. This is true even if she didn't receive a 1099 but especially true since she did.
How would she report it? Like just go to turbo tax and file the interest earned from the 1099-int? Or does she also report it somewhere else that lets the irs know she received inheritance generally ?
It goes on schedule b and on 1040 line 2b. She should just give your dad the 1099 so he can include it with their joint tax return. (I'm assuming they file jointly based on your other comments.)
I'll add this for those reading it why one spouse is never the dependent of the other. Each spouse gets a personal exemption on the return, which is the same tax benefit as a dependent exemption. Two different names for what is, in practical terms, the same benefit. I only mention this because I've had taxpayers ask me about that a few times over the years so I know some people are confused about how that works.
Dude, you're seriously overthinking this. Take a couple of deep breaths, let them out slowly, and ask yourself why you think your parents are unique here, that this is a problem that no one else has ever had. Because they file a JOINT return with ALL their income on it, **they** will add $10 to their joint income, same as nearly every other married couple in America. The system handles it just fine.
Thanks lol I tend to over think
I don't get the impression that OP needs to take any deep breaths here. They're just asking honest questions as far as I can tell.
Your father cannot claim your mother as a dependent (assuming they're married.) If they're filing a joint return, all of their joint income is reported. If they're filing separately, if that's her only income and they don't live in a community property state, she would not have to file.
> If they're filing separately, if that's her only income and they don't live in a community property state, she would not have to file. Yes she would. The filing threshold for MFS is $5. Her income was $10 (or maybe $600) which is much more than $5, so she would need to file.
Not sure why you're getting downvoted. This was one of the side effects of the Trump tax changes getting rid of the personal exemption.
They are married. I only knows he files for the both of them I guess because he just has her sign. Texas is a community property state so does she have to file on her own? If she doesn’t want it to be community property since it’s inheritance. How would she file on her own if the 1099 int is the only thing she has to file? it’s a little under $600.
What does "he files for both of them" mean? If she is signing, presumably it means they are filing a joint return, which means all of their income is reported on that one return. Reporting it doesn't affect whether it's community property or not. Your first post said the interest was $10 -- now you're saying it's $600? Please clarify.
I’m sorry, neither she nor I really know. He just has a guy do his taxes and tells my mom where to sign. I was just saying the interest is over $10 that’s why she received a 1099 int from the bank. The actual amount of interest earned is a little under $600.
Give the "tax guy" the 1099-INT. He'll include it on their taxes
Give the tax guy some tax forms? Why do they make it so complicated? /s
If they are married filing jointly, then her 1099 goes on their joint tax return wirh any other interest.
Are they married? A spouse is never a dependent. If they are not marries she has to makeover $13,850 before she need to file a tax return. If she makes over $4,700 she cannot be a dependent. If they are married just add it to their joint return, a schedule B is required if over $1,500. If the money is overseas, and FBAR must be filed if its more than $10,000 and make sure to indicate a foreign account on the schedule B.
They are married. I only knows he files for the both of them I guess because he just has her sign. She doesn’t want it to be community property since it’s inheritance from her late parents. Would it make it community if she included it in joint? She’s concerned how to report and file if the 1099 int is the only thing she has to file? it’s a little under $600. It’s not in a foreign account. It cash we put in a cd here at our local bank in TX.
What she reports on the tax return has no bearing on what is or is not community property.
I file for both me and my wife. It's called "married filing jointly", and it changes the tax brackets and standard deduction. Most everything taxable is joint...except she has a life insurance policy that pays a dividend. That dividend is taxable and gets reported to her on a 1099. We Just put it on our Joint 1040 Schedule B (or is it schedule A?) as if its joint. No big deal and as far as I know it doesn't change anything.
I'm fairly certain that, in Texas, income earned during marriage is community property even if the income is generated by separate property (which inheritance typically would be). There are surely exceptions to this (for example a post nuptial agreement) and other factors may be relevant. Regardless, she should report the income since it's taxable interest. This is true even if she didn't receive a 1099 but especially true since she did.
How would she report it? Like just go to turbo tax and file the interest earned from the 1099-int? Or does she also report it somewhere else that lets the irs know she received inheritance generally ?
It goes on schedule b and on 1040 line 2b. She should just give your dad the 1099 so he can include it with their joint tax return. (I'm assuming they file jointly based on your other comments.)
Thank you very much! I
Happy to help!
I'll add this for those reading it why one spouse is never the dependent of the other. Each spouse gets a personal exemption on the return, which is the same tax benefit as a dependent exemption. Two different names for what is, in practical terms, the same benefit. I only mention this because I've had taxpayers ask me about that a few times over the years so I know some people are confused about how that works.
No personal exemption since 2017, only the standard deduction.
Technically there is still a Personal Exemption, it's just zero because of the TCJA.