Tax questions

[Conan The Librarian]

We've been filing as joint on our income taxes, but I'm wondering if we could save money by filing separately? Also, and this is a bit crazy but it may be worth looking into: When we retire, would it make financial sense for us to be legally divorced with no other change in our relationship. I.e., still living together, no animosity, still as married as ever, but divorced for tax and benefit purposes?
 
 

[Old Fart]

About he only way you'll know for sure on filing is to do it both ways and see which ends up better.
There's so many new tax laws every year the target keeps moving.

[Conan The Librarian]

Old Fart:
 
Isn't it disgusting that I would even think of something like that? There are so many perverse incentives, though, it makes sense to ask.

[Old Fart]

Not disgusting at all.
We run ours both ways most years and filing jointly has been better for us.
The way they pull it out of your check you have to check.
 
Sure makesd a good argument for a flat rate though.

[rockbilly]

I recommend finding a good CPA and letting them handle the filing they know the laws and will find the best way for you to file.  The wife and I have been using one for years, its help save us lots of dollars.  Another thing, I always ask for a delay in filing and never  file before the 15^th of October, if I do have to pay I can use my money longer or draw interest, and the great thing, the fees the CPA charges are deductible the next year A good CPA can be found for a reasonable fee and it sure eliminates all the worry of doing it yourself..

[Graybeard]

Just the opposite I believe. Why do you think so many gay couples want to get married? For the tax benefits married folks gain over paying separate income tax as individuals.

[PowPow]

Looking at the tables, it appears the benefit to filing separately reaches its peak opportunity if the spouses' incomes are equal or nearly equal. There may be other factors that optimize filing separately. As the difference in the incomes becomes greater, i.e, wife with zero income, filing jointly seems to be best.
I have done my own for almost 40 years, surviving a 30 page return one year and audit questions the last 3 years. Not that I don't trust CPA's, but doing it myself gives me a sense of what records are important. Turbo Tax will do the calcs and let you know if joint or separate is the best deal, and it will figure alternative minimum tax if applicable. AMT is a pain to figure by hand.


Conan - I think you can save some money on your taxes if you will poke your eyes out, but you should consult a CPA before you try it.

[williamlayton]

GB
I believe that most gays want the benefits of --health and other employer related benefits. It is also helpful when it come sto a will.
Blessings