I'm in a very similar situation and wanted to share what I learned after going through this process. Like others have confirmed, spouses can never be claimed as dependents regardless of income or disability status - that's just not how the tax code works for married couples. What really helped me was sitting down with a tax professional who specializes in disability-related tax issues. They showed me that while I couldn't be claimed as a dependent, we were actually eligible for several benefits I had no idea about. Beyond the Credit for the Elderly or Disabled that others mentioned, we also qualified for some medical expense deductions related to my condition. One important thing to keep in mind is that SSDI taxation isn't just about your benefits alone - it's calculated based on your combined household income. In our case, even though my husband earns significantly more than my SSDI amount, our total combined income still kept most of my benefits tax-free. The IRS website can definitely be overwhelming, but the core principle is straightforward: focus on married filing jointly vs. separately rather than trying to figure out dependent status. In almost every case I've seen, joint filing provides better overall tax benefits for couples where one spouse receives SSDI. You'll typically get access to higher income thresholds, more credits, and better deduction opportunities than you would filing separately.

I've been following this thread and wanted to add my perspective as someone who's been on SSDI for about 6 years now. Everything everyone has said about spouses not being able to claim each other as dependents is absolutely correct - that's just not how the tax system works for married couples. What I found really helpful when I first started dealing with this was keeping detailed records of all my disability-related expenses throughout the year. Things like medical equipment, accessibility modifications to our home, physical therapy costs not covered by insurance, and even some travel expenses for medical appointments can potentially be deductible if they exceed that 7.5% threshold others mentioned. One thing I wish someone had told me earlier is that even though my SSDI income seems "small" compared to my spouse's salary, our joint filing status has actually worked out really well for us tax-wise. We've been able to take advantage of higher income limits for various credits and deductions that we wouldn't have qualified for filing separately. The key is really understanding that being married changes your entire tax picture - it's not about one spouse claiming the other, it's about optimizing your combined tax situation. I'd definitely recommend either using good tax software that handles SSDI correctly or finding a tax preparer who understands disability benefits. The potential savings from credits and deductions you might be missing could be significant.

Here's a quick tip - go to irs.gov/getanippin and see if you can retrieve the dependent IP PIN there. Sometimes if you're the legal guardian, you might be able to get it online, especially if you've already set up an ID.me account. Worth trying before spending hours on the phone!

@Omar Zaki - I went through this exact same nightmare last year! The key thing to understand is that your daughter likely got an IP PIN assigned automatically by the IRS due to some kind of data breach or suspicious activity involving her SSN - this happens more often than you'd think with minors. Here's what you need to do: Call the IRS Identity Protection Specialized Unit directly at 800-908-4490. This is the specific number for IP PIN issues, not the general IRS line. When you call, tell them you need to retrieve an IP PIN for your dependent because your e-file return is being rejected. Have your daughter's SSN ready and be prepared to verify your own identity as her parent. The agent will be able to tell you immediately if she has an IP PIN on file and what it is. Don't try to get it online - that only works for your own PIN, not dependents. Also don't waste time calling the general IRS number - they'll just transfer you around. Once you get the PIN, you'll enter it in the dependent section of your tax software, not in your own IP PIN field. Good luck - you should be able to get this resolved in one phone call once you reach the right department!

Um, isn't there a tax exemption for scholarships and fellowships? My roommate is on a full-ride scholarship and she told me she doesn't pay taxes on any of it. Super confused why some people have to pay taxes on this stuff and others don't...

As a fellow grad student who went through this same confusion, I can confirm what others have said - fellowship money for living expenses is definitely taxable income. The key thing that helped me was understanding that the IRS distinguishes between "qualified educational expenses" (tuition, required fees, books) which are tax-free, versus everything else which is taxable. Since your tuition is covered separately and the fellowship is for living expenses, you'll need to report the full amount as income. Even though your university won't send you a 1099 or withhold taxes, you're still responsible for paying them. I'd strongly recommend setting up quarterly estimated tax payments once you know your fellowship amount for the year. I made the mistake of waiting until filing season and got hit with an underpayment penalty. The IRS Form 1040-ES has worksheets to help calculate what you owe. Also, keep detailed records of any educational expenses you pay out of pocket - while they won't reduce your taxable fellowship income, they might qualify for education tax credits that can lower your overall tax bill.

i had this EXACT problem last year. literally one number off on my address. i just filed with the wrong address on the W2 and put my correct address on the 1040 form. got my refund no problem, no questions from the irs. dont stress about it.

Thanks everyone for the reassurance! This has been really helpful. I was getting so anxious about this silly address error potentially messing up my entire tax return. It's good to know that the IRS uses SSN as the primary matching identifier rather than addresses. I'm going to go ahead and file with the W2 as is (making sure my correct address is on my actual return) and then reach out to HR to get their records updated for next year. Really appreciate all the advice - especially the real-world experiences from people who've dealt with the same issue. Tax season is stressful enough without worrying about things that aren't actually problems! 🙏

Has anyone done the math on approximate costs for setting up each option? I'm a web developer making around $140k and currently operating as a single-member LLC. My CPA suggested considering C corp status but wasn't clear on whether I should file the election or do a full conversion.

For someone at your income level ($140k), the tax election route is probably your best bet initially. I made a similar transition last year as a freelance consultant earning about $130k. The key consideration at your revenue level is that you're likely not retaining massive amounts in the business yet, so the main benefits you're looking for are probably the self-employment tax savings and ability to deduct health insurance premiums. With the LLC taxed as C corp election, you'll pay yourself a reasonable salary (I do about $85k of my $130k through payroll) and take the rest as distributions. This saves you roughly $2,400 annually in self-employment taxes compared to straight LLC taxation. Plus you get the health insurance benefits others mentioned. The conversion to actual C corp makes more sense when you're planning to retain significant earnings in the business or need the formal corporate structure for investors. At $140k, you're probably taking most profits out anyway, so the simpler LLC structure with corporate tax treatment gives you 90% of the benefits with way less hassle and cost. My advice: start with the tax election, see how it works for a year or two, then reassess if you need full conversion as your business grows.