How do you split the tax refund when a married couple files jointly but has separate finances?
Great question, specially since you are asking this in December 2015 and not in April 2016. I love when people think ahead :)Here is my take on the subject: Conceptually - each person pays his/ her own taxes, let us say you made $100,000 and your spouse made $50,000; you should pay taxes on $100k and the spouse should pay taxes on $50,000. This is simple.Here is how filing jointly is different than single filers:1. You lose certain things - for example, tax brackets for married couples aren't twice of single filers (marriage penalty)2. You gain certain things - let us take the above example of 100k/ 50k income. Let us say the 50k earning spouse had a 1k loss from a part time business. If the spouse was single, the loss would be deducted from 25% income bracket - $250 tax savings. But with a $150,000 combined earning, the loss is deducted from the 28% bracket, tax savings of $280. So a net difference of $30.Examples like "1" above in my opinion should be split either 50% - 50% OR in proportion to their incomes (or in proportion to their taxes).Examples like "2" - I can see an argument both ways. Spouse earning 50k was able to deduct from a higher tax bracket only because the first spouse was earning 100k so the first spouse deserves some credit too. Counter argument - if there was a profit, then the spouse earning 50k is solely liable for the tax. So I guess this is also a matter of conversation between the couple.Here is how I would go about it: Prepare your taxes as if you were single filers. Then prepare your joint return. The difference is the amount that need to be allocated between the two spouses.I would look at the underlying reasons for the difference - if the difference is purely because the IRS rules tax married people differently than single filers, then they should split the difference in proportion of their incomes.If the difference is due to something else, like the $1k business loss that got deducted from a higher tax bracket; I would guess the 100k earning spouse to have a large heart and let the lower earning spouse to keep that portion of the refund.A good relationship is a real treasure, not worth risking it for a few dollars.By the way, if you are financially responsible, then getting a lot of refund is a bad thing in the first place. Read my entire article here What to know before filling Form W-4? - One More Dime
Why am I, as a single person, forced to pay more taxes?
Assuming this refers to personal federal income taxes in the United States, I’ll question the assumption. Can you specifically describe how you are being punished? And you are forced to pay more taxes than whom? Details, please!Here’s a nice little article that deals with the subject of the marriage penalty. Two people with similar incomes will generally pay more tax as a married couple than as two single people. However, if their incomes are more unequal then it can turn out that they pay less total tax as a married couple. The simple reason is that the personal income tax laws are written around the concept of a household so that the income is figured as for the whole household, not per individual. Two married people with high incomes will have a household with a doubly high income that might push into a higher tax bracket. But if a wage earner is married to someone without an income, like a spouse who stays at home to take care of children, then the earner will have more exemptions and thus lower tax.Should You Get Married (Or Divorced) For Tax Reasons?True story. A number of years ago some friends of mine decided to divorce. They had been married right out of college only a couple of years earlier and were both earning good money. Their decision was entirely financial, to reduce their taxes. They still lived together, wore their wedding rings, bought property, and raised a family. I never asked if they were still single.It’s easy to find fault with something but a lot more difficult to come up with an alternative that is better and viable. If you have such a solution please describe it and ask for feedback. Quora has lots of people with opinions who will be happy to share their thoughts. Make sure that your solution is fairer but that it generates at least as much revenue without any extra complexity or other undesirable side effects.
Can you get married and still stay on section 8?
He can get married, but in order to keep section 8 you would have to qualify as well. In order to qualify you either need to be on disability also or work a minimum of 35 hours a week. Otherwise, as soon as you move in he is no longer eligable for tax payer support.
Is The Death Penalty Cruel And Unusual Punishment?
Is The Death Penalty Cruel And Unusual Punishment? Can you please explain your reasoning in detail please? I will give best the answer in a few days. Thank you!
I'm being audited by the IRS and I cheated on my taxes - HELP!?
Alright, before I get into detail with my situation let me start by saying that I understand the seriousness of this crime, I do not need a lecture, I did the crime so I'm willing to face the consequences. With that being said, HELP! I heard about a new tax credit for this year, the First Time Home Buyer credit. It gives new home buyers a $7500 credit. The home had to be purchased between April 2008 and June 2009 to qualify. I didn't purchase a home, but honestly I needed the money so I took the credit. Now, I filed my taxes through TurboTax online on 1/21 and it was accepted the same day. My state return came about a few days later via direct deposit. Checked the IRS Where's My Refund page all the time, and my expected DD date was always 1/30, didn't change like I saw everyone else's has been. Didn't get a deposit but I didn't worry since everyone on here reported the same thing. Then today I log on to WMR and I freeze up: There is a delay in processing your tax return. It mentions code 1121, which I looked up and found out to mean the computer spit out my return for review by a human...aka the first phase of an AUDIT. I'm f**ked! Ok anyway, I called and I'm supposed to get a letter in a few weeks, 'after my account is reviewed'. So, any advice? Since you can claim the credit on your 2008 return if you plan to purchase a home in 2009, I figured i'd be fine. Problem is I goofed up and put on my return that it was indeed purchased in 2008. What do you think caused the flag for an audit? Could it be easy as saying it was a mistake? Also I figured it was because I'm under 21, made under $15,000 last year, and didn't include two W-2's (planned on filing an amendment). I know the maximum punishment for this behavior is a $100,000 fine and 3 years in jail. Definitely can't afford a lawyer. Should I just expect a slew of threatening letters from the IRS requesting my presence and supporting documentation, or will I get an actual knock on my door from the IRS? If anyone has been in this type of situation I'd love to hear your experience. And yes, lesson learned.