Question
Mr. and Mrs. Davis have been married for 12 years. Mr. Davis is collecting disability payments from the government and also working under the table
Mr. and Mrs. Davis have been married for 12 years. Mr. Davis is collecting disability payments from the government and also working under the table and getting paid in cash doing building construction that he does not report as income. Mrs. Davis has no gross income of her own and has always filed a joint return with Mr. Davis. Mrs. Davis is uncomfortable that Mr. Davis doesnt report the income from his construction work, but Mr. Davis fears that if he reports the income from the construction work that he will no longer be eligible to receive the disability checks. What filing status would you recommend for Mr. and Mrs. Davis? In your explanation, discuss whether it would matter who your client was: Mr. or Mrs. Davis?
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