| Newly married--tax problems! Poll!!!!!!!!!!!!!! |
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rte215
First Time Poster
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Joined: 22 Mar 2005
Location: Michigan
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| Newly married--tax problems! Poll!!!!!!!!!!!!!! |
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I will try to write this note without mentioning gender. As a newly married couple we are doing our taxes now. One of us makes 33% more than the other. The person who makes 33% more for the last 3 years paid over $2500 a year in Fed taxes on April 15th. The other one of us for the last 5 years has received a refund which averaged $1000. In doing our taxes we did them separately first and then together. Separately, the person who averaged an refund would have received another refund of $800. The person who usually pays on 4-15 would have paid $3200. Together our income liability is $1400.
The question is: what do you think the fair way to handle this matter is?
Many thanks for all of your suggestions..............anonymous
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Tue Mar 22, 2005 11:36 am |
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BlankenshipFP
Money Talk Advisor
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Location: Illinois
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Let me get this straight:
MFJ - you owe $1400
MFS - spouse 1 gets $800 refund
- spouse 2 owes $3200
- net, you owe $2400
The only way to do this is to file as MFJ and you jointly pay the $1400. You are still married, right? I'm not sure I follow your question about "fairness" - unless you're keeping totally separate financials, and neither of you benefits from the other's income.
Next, you need to optimize your W4's so that you don't end up owing so much next year. A CPA or tax preparer can do this for you.
There are far too many real issues that can come between a couple to make this be a problem. Bite the bullet, act as a unit, and move on.
Hope this helps -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Tue Mar 22, 2005 3:58 pm |
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Riz
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Location: San Francisco
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| Newly married--tax problems! |
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Hi,
I am a married man, making less then my wife. Not saying that this is the case, but either way, should it even matter? You guys are married, whatever brings more money into you guys household, that is what you should go with. Or, whatever take out less money, go with that!
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Tue Mar 22, 2005 7:32 pm |
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Rolo
Yo' Daddy
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Location: Colorado/Florida
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| Re: Newly married--tax problems! Poll!!!!!!!!!!!!!! |
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quote:
Originally posted by rte215
The question is: what do you think the fair way to handle this matter is?
This isn't a money issue/problem, but a marital/relationship one. Money has little to do with it.
You are ONE COUPLE, not TWO INDIVIDUALS. 'HIS' and 'HERS' versus 'OURS'.
This income tax deal is a symptom, not the problem. Masking who makes more than whom is a symptom of a bigger non-income-related problem.
Am I to assume that you both keep your finances separate and have some sort of system to divvy the utilities and such?
Last edited by Rolo on Thu Mar 24, 2005 12:23 am; edited 1 time in total |
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Thu Mar 24, 2005 12:18 am |
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xboxundone
Senior Member
Cash: $ 67.83
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| Re: Newly married--tax problems! Poll!!!!!!!!!!!!!! |
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quote:
Originally posted by Rolo
quote:
Originally posted by rte215
The question is: what do you think the fair way to handle this matter is?
This isn't a money issue/problem, but a marital/relationship one. Money has little to do with it.
You are ONE COUPLE, not TWO INDIVIDUALS. 'HIS' and 'HERS' versus 'OURS'.
This income tax deal is a symptom, not the problem. Masking who makes more than whom is a symptom of a bigger non-income-related problem.
I have to concur on this one.
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Thu Mar 24, 2005 12:22 am |
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bong12187
Preferred Member
Cash: $ 24.50
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Joined: 31 Jul 2005
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| Re: Newly married--tax problems! Poll!!!!!!!!!!!!!! |
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[quote="rte215"]I will try to write this note without mentioning gender. As a newly married couple we are doing our taxes now. One of us makes 33% more than the other. The person who makes 33% more for the last 3 years paid over $2500 a year in Fed taxes on April 15th. The other one of us for the last 5 years has received a refund which averaged $1000. In doing our taxes we did them separately first and then together. Separately, the person who averaged an refund would have received another refund of $800. The person who usually pays on 4-15 would have paid $3200. Together our income liability is $1400.
The question is: what do you think the fair way to handle this matter is?
The way I am reading this is that you want to find out how to save on taxes. Just by looking at it at face value, filing jointly wins hands down. $1400 filing jointly vs. $2400 ($3200-$800) filing separately.
If the spouse who usually receives a tax return doesn't like this idea, I would recommend that the other spouse pays the $800 out of his/her pocket. $3200-$800 =$2400 The spouse who are earning more will save $1k with this process.
B
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Fri Aug 05, 2005 9:20 pm |
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