2 26 2018 by
Taxes and Marriage
Before the dress fitting, selecting the florist, or ordering the cake, it is important for Individuals to investigate their up and comming Joint filing status and the tax and financial opportunities and threats surrounding them as Married Filing Joint or Married Filing Seperate Tax Payers. Family Wealth counseling and independent financial advisement applied to strategic tax planning ensures your happy beginning meets a happy year end at the time of filing. With proper planning the honeymoon doesn't end at 1040. .
Married Filing Seperate rarely offers tax savings to couples no matter what tax bracket or what type of income each individual has. Married Filing Seperate is best chosen for legal reasons where there exists a liability for one spouse's business or investment that the other does not want to take responsibility for or some type of legal issue that influences the decision to keep a seperate tax account apart from their spouse. Many credits that are allowed based on income are denied or limited when Married Filing Seperate Filing status is chosen. Some couples have the false understanding that they may continue to file head of household after marriage. This is not true unless a Married Couple has been seperated at least 6 months before the end of the filing period. If you have been seperated at least 6 months and you have a dependent child, then you would be allowed a Head of Household filing status if other tests are met. If Married Filing Seperate is chosen and one spouse itemizes, this causes both spouses to have to itemize so be very careful about selecting Filing Status when marriage or divorce is in your "Life Change" list.