Marriage Actually - An honest look at marriage

Marriage and Taxes: Which Way to File?

by Bald Man on February 10th, 2008

April 15th is steadily approaches… are you ready? Not to taunt you too much, but we received our refund a week ago. ;)

One question you may have - particularly if you got married during 2007 - relates to your filing status. Here are some basics that you may find useful. Before going any further I should probably make the normal disclaimers: I’m not a tax professional; you are responsible for your own tax choices; and if you’re not confident in those choices, then seek professional help… I mean professional TAX help.

• First off, your legal marital status on December 31 is what the IRS looks at. It doesn’t matter when you got married. The last day is what counts for tax purposes. Tied the know on New Year’s Eve? You count as married all year to the IRS.
• Next, “married” refers to your legal status as defined by your state. If you’ve lived together for years but aren’t in the state’s eyes married, then you’re not married.
• Although there are five filing statues, most married couples have only two choices when it come to filling out their 1040, Married Filing Jointly or Married Filing Separately. (Certain individuals who are married but do not live with their spouse may be able to file as Head of Household. See a tax pro for more info.)
• Most of the time Married Filing Jointly is the way to go. Doing so allows you to take advantage of more and/or higher limits on tax deductions and tax credits. However, in certain circumstances it may make sense for you to choose Married Filing Separately. I’ll hint at one such situation…
• Be aware that Married Filing Jointly means each spouse takes full credit and responsibility for the tax return. This is true no matter how the income or expenses break down. If the IRS were to take issue with something, they can come after both OR either spouse.

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POSTED IN: Marriage & Money