My wife and I are living apart, because she is eligible to receive Medicare in her home state. Everything I'm reading on the IRS website says that we can still file jointly. However, her caseworker in Maine, told her that we cannot file jointly, because she is receiving benefits..

I lived in Colorado all of 2010, and my wife moved back to Maine in early January 2010. We are not divorcing or legally separated.

Help!

You CAN file jointly; there is nothing in the TAX LAW that is stopping you from filing jointly.

However, by filing jointly, you MAY make her benefits subject to taxation, because your combined income may go over the limit that determines whether the benefits get taxed or not.

You need to model the return BOTH ways (separate and joint) to determine which way is best.

If you need professional help filing your return, email me at [email protected].