Do I count as a dependent for tax purposes if I have zero income and disability pending?

Thanks for the quick response! So even though I had zero income, we should still file jointly? I was worried that since I didn't contribute financially this year it might affect how we file. Also, if my disability gets approved next year and I receive back payments, we'd just include that as income on next year's taxes, correct?

Yes, married filing jointly is almost always more beneficial than filing separately, even when one spouse has zero income. You'll generally get better tax rates, higher standard deduction, and access to more tax credits. Regarding disability back payments, yes, typically you would report that income in the year you actually receive the payment, not the years it covers. However, the exact tax treatment depends on what type of disability benefits you're receiving (SSI, SSDI, private disability insurance, etc.). Some disability benefits might be partially or fully tax-exempt.

How accurate is this service? I'm waiting on my VA disability determination and worried about messing up the tax part when it comes through.

Does it work with SSI/SSDI cases too? I've got a family member in a similar situation who's been waiting on approval for almost 2 years now.

It's extremely accurate - it correctly identified which portions of my back pay were taxable and which weren't. They use the same rules and guidelines the IRS follows, so I felt confident with their analysis. It even explained how my state taxes would be affected differently than federal. Yes, it definitely works with SSI/SSDI cases! My situation was SSDI and it provided clear explanations about the taxation thresholds based on my other income. They cover all types of disability payments - SSI, SSDI, VA disability, private insurance, workers comp, etc. Two years is a long wait, so when that approval finally comes through, your family member will definitely want clarity on those back payments.

How does that even work? The IRS phone system is literally designed to be impossible to navigate.

Sounds like BS honestly. Nobody gets through to the IRS that quickly. Last time I called I waited 2+ hours and then got disconnected.

It works by basically navigating the phone system for you and holding your place in line. When they're about to connect you with an agent, you get a call back. It's not like they have some special access - they're just handling the awful waiting process so you don't have to sit there for hours. I was super skeptical too! I had already tried calling three separate times and got disconnected each time after waiting forever. The fourth time I tried calling on my own, I got through after 1.5 hours but then got transferred and disconnected again. That's when I was desperate enough to try anything. I figured if it didn't work I could just dispute the charge, but it actually did what it promised. Was it worth it? For me, absolutely - I got a specific answer about our disability payment taxation that saved us from making a costly mistake.

That's a good point I hadn't considered. If my claim gets approved and I receive a large back payment, would we be better off filing separately in that year to avoid the higher bracket?

Filing separately usually doesn't help with this situation and often makes things worse. What you might want to look into is something called "income averaging" or the "lump-sum election method" specifically for certain types of back payments. Not all disability payments qualify for this treatment - it depends on what type of disability benefits you're receiving. Social Security disability payments have different rules than private disability insurance, for example. When you know what type of disability payment you'll be receiving, definitely consult with a tax professional who specializes in disability taxation to minimize the impact.

This is correct. I'm a tax preparer and see this confusion often. Spouses are never dependents, period. The only question is joint vs separate filing.