5 Tax Breaks Stay-at-Home Spouses Can Use To Save the Household Money
Written by
Gabriel Vito
Edited by
Zuri Anderson
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Not working does not mean you are not contributing to your household’s finances, especially at tax time.
Several tax breaks are available to single-income households that can lower taxable income, reduce the amount you owe or put more money back in your pocket when you file.
Here are five worth knowing about.
Spousal IRA Contributions
If you file a joint tax return, you may still be able to contribute to an IRA even if you did not earn income during the year, as long as your spouse did. The IRS refers to this as a spousal IRA, formally called the Kay Bailey Hutchison Spousal IRA.
“A particularly powerful provision is the spousal IRA, which allows a working spouse to make retirement account contributions for an unemployed partner based on household earned income,” said David Kang, CEO and enrolled agent at Keeper. “This contribution is often deductible, subject to income limits and retirement plan participation, thus lowering taxable income.”
For 2026, the IRA contribution limit is $7,500 per person, or $8,600 for those age 50 or older, according to the IRS. That means a couple could potentially contribute up to $15,000 across both spouses’ IRAs in a single year.
Dependent Care FSA
If the working spouse’s employer offers a dependent care flexible spending account (DCFSA), this can be one of the simplest ways to reduce the household’s tax bill.
Starting Jan. 1, 2026, according to IRS Publication 15-B, the annual contribution limit for dependent care FSAs increased from $5,000 to $7,500 under the One Big Beautiful Bill Act. It marks the first increase to the limit in 25 years.
Contributions are taken from the working spouse’s paycheck before taxes, which lowers taxable income. Eligible expenses include day care, preschool and after-school care for children under age 13.
Child Tax Credit
The child tax credit can also reduce the amount many families owe at tax time.
According to the IRS, the credit is worth up to $2,200 per qualifying child. Couples filing jointly can qualify for the full amount if their annual income is $400,000 or less.
Because the credit directly reduces your tax bill, it can be especially valuable for single-income households. If the credit brings your tax liability down to zero, you may also qualify for the additional child tax credit, which can provide a refund of up to $1,700 per qualifying child.
Saver’s Credit
Some households may qualify for another tax break when they contribute to retirement accounts.
For 2026, the income limit for the saver’s credit for married couples filing jointly is $80,500, according to the IRS. Households earning under that threshold can receive a credit equal to 10%, 20% or 50% of contributions made to an IRA or employer-sponsored retirement plan.
“Even for households where only one spouse works, maximizing retirement contributions and taking advantage of credits such as those related to dependents can make a huge difference in the overall tax equation,” Kang said.
The credit is claimed on Form 8880 and can be taken in addition to any deduction already claimed for the same retirement contribution.
HSA Catch-Up Contributions
Couples enrolled in a high-deductible health plan may have another opportunity to increase tax-advantaged savings later in life.
“If you’re on a family HSA-eligible plan and both spouses are 55 or older, each spouse can make a $1,000 HSA catch-up contribution, but the stay-at-home spouse has to open their own HSA to use that extra bucket; it can’t all be dumped into one account,” said Prudence Zhu, certified public accountant (CPA) and founder and CEO of Enso Financial.
Each spouse must have a separate HSA account to take advantage of the additional contribution.
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