Taxes issues for married couples
Most couples file their return jointly, combining incomes and sharing deductions. That trend will probably continue, encouraged in large part by tax-law changes during the last few years to ease the marriage penalty. But sometimes it pays for couples to re-examine how they file. There definitely are instances when filing separately might be warranted.Overcoming the Marriage Penalty at Tax Time
"My wife and I were married in August 2010. I have been reading that we may want to adjust our W-4 allowances in order to avoid paying money back at tax time. We would like to maximize the amount we get back from income taxes, because we plan to use some of this money toward a down payment on a house together. What is your recommendation?"
Alimony Payments Affect Taxes
When the end of matrimony leads to the start of alimony, each parting partner can feel the tax effects. If you are the ex-spouse getting alimony payments, the money is taxable to you as income in the year it is received. This added income calls for a couple of additional tax considerations for the recipient.Domestic Violence Complicates Tax Problems
A troubled marriage is painful enough. But things can get downright nasty when you add taxes to the mix. Filing for innocent spouse tax relief might lessen a spouse's financial problems, but too often this tax maneuver triggers domestic violence.
More Money Tips & Tools
- 10 places to look for $500 in savings
- 9 savvy strategies to save for a rainy-day fund
- 5 big bills you can cut fast
- Money-saving secrets of the rich and frugal
- Don't get married without doing this paperwork
- The emotions behind buying stuff
- Are you responsible for your parents' debts after death?
- This week's Readers' Tips