Search in your own words. Describe what you need or ask a wedding planning question.
if hes making that kind of money he should incorporate himself for more tax right offs and other good priveledges( sp)- that is what our accountant suggested for my DH. oh forgot to add and I stopped working. I work per diam( like 5 days if that a month) and thats off the books.
Posted by Beth1210
someone making a normal salary marry's someone who makes their salary in a month?
please tell me it's not worth it for me to work anymore![]()
but seriously- what are the tax implications?
Posted by ChristineAE
Filing separately
If you file as married filing separately, adverse tax implications include:
You may not be eligible for certain credits, including the earned income credit and education credits.
A non-working spouse won't be able to contribute to an IRA.
Don't overlook state taxes. You may get a federal refund but owe a lot in state taxes.
However, filing separately may be advantageous if one spouse owes money to Uncle Sam and the other is due a refund. Separate filing also may save you taxes if one spouse has significant medical expenses, casualty losses or miscellaneous deductions that must meet a percentage-of-income threshold before they can be claimed.
Remember: a husband and wife filing separate returns must use the same method of claiming deductions. If one itemizes, both must itemize.
Filing jointly
Joint filing is the most commonly used filing method for married couples. Why?
You have a lower tax liability if there is disparity in the two incomes.
You could be eligible for many credits, such as those for education and dependent care expenses.
It's easier because it means filing one federal tax return instead of two.
And the main appeal for this filing method? The rates for married individuals who file jointly are much lower than those for married filing separately or even single, unmarried taxpayers.
Marriage tax penalty
The marriage-and-taxes picture, however, is not totally rosy. About half of the couples who file jointly end up paying what is popularly called the marriage tax penalty.
This tends to happen when both spouses earn roughly the same amount of income. In these cases, they tend to pay more than they would have if they were unmarried and filing as single taxpayers. Also, a couple's combined income can push them into a higher tax bracket on a joint return.
Tax law changes in 2001 will alleviate the marriage tax penalty somewhat, but full relief won't arrive until 2005.
If you do decide to heck with the tax costs and tie the knot, figure your taxes both as married filing jointly and married filing separately. That way, you can make sure you file the way that will cost you the least combined tax.
Posted by 103005FallBride
Posted by ChristineAE
Filing separately
If you file as married filing separately, adverse tax implications include:
You may not be eligible for certain credits, including the earned income credit and education credits.
A non-working spouse won't be able to contribute to an IRA.
Don't overlook state taxes. You may get a federal refund but owe a lot in state taxes.
However, filing separately may be advantageous if one spouse owes money to Uncle Sam and the other is due a refund. Separate filing also may save you taxes if one spouse has significant medical expenses, casualty losses or miscellaneous deductions that must meet a percentage-of-income threshold before they can be claimed.
Remember: a husband and wife filing separate returns must use the same method of claiming deductions. If one itemizes, both must itemize.
Filing jointly
Joint filing is the most commonly used filing method for married couples. Why?
You have a lower tax liability if there is disparity in the two incomes.
You could be eligible for many credits, such as those for education and dependent care expenses.
It's easier because it means filing one federal tax return instead of two.
And the main appeal for this filing method? The rates for married individuals who file jointly are much lower than those for married filing separately or even single, unmarried taxpayers.
Marriage tax penalty
The marriage-and-taxes picture, however, is not totally rosy. About half of the couples who file jointly end up paying what is popularly called the marriage tax penalty.
This tends to happen when both spouses earn roughly the same amount of income. In these cases, they tend to pay more than they would have if they were unmarried and filing as single taxpayers. Also, a couple's combined income can push them into a higher tax bracket on a joint return.
Tax law changes in 2001 will alleviate the marriage tax penalty somewhat, but full relief won't arrive until 2005.
If you do decide to heck with the tax costs and tie the knot, figure your taxes both as married filing jointly and married filing separately. That way, you can make sure you file the way that will cost you the least combined tax.Wow! Do you do this for a living...because you should!
![]()
Posted by Beth1210
thanks everyone!
I am trying to gather evidence as to why I shouldn't have to work anymore!!!
See my mom is not married and doesnt own a house/condo- and makes over 100k a yr and she gets slammed with taxes being single and no real estate tax to claim- I cant imagine how bad uncle sam slams your FH with taxes each year being a single man- my DH had that problem till we were married, the house is in my name so I claimed it each yr and made to make 90k a yr- my tax returns were always over 6k , this yr. I stopped working last month so I have half a yr to claim with him so Im curious to see what we get back now as a joint and with the majority of his income(125k). uncle sam *****!!!!
Posted by girlygrl33
See my mom is not married and doesnt own a house/condo- and makes over 100k a yr and she gets slammed with taxes being single and no real estate tax to claim- I cant imagine how bad uncle sam slams your FH with taxes each year being a single man- my DH had that problem till we were married, the house is in my name so I claimed it each yr and made to make 90k a yr- my tax returns were always over 6k , this yr. I stopped working last month so I have half a yr to claim with him so Im curious to see what we get back now as a joint and with the majority of his income(125k). uncle sam *****!!!!
She gets money back dont get me wrong but nothing compared to if you are making 100k or more a yr without having that joint or real estate to claim.
Posted by ChristineAE
That's odd.
I get a good percentage of my taxes back at the end of the year.
Posted by ChristineAE
I pull in close to 100K (and not even 25 y/o yet) so the FI could stay home and make babies if he really wanted to.
Posted by SomethingBlu
Posted by ChristineAE
I pull in close to 100K (and not even 25 y/o yet) so the FI could stay home and make babies if he really wanted to.
Chris, can I work with you? Your salary rocks! Good job girlie!![]()
Posted by SomethingBlu
Posted by ChristineAE
I pull in close to 100K (and not even 25 y/o yet) so the FI could stay home and make babies if he really wanted to.
Chris, can I work with you? Your salary rocks! Good job girlie!![]()
Posted by ChristineAE
Sure. I'll hire you....but it's actually sad. I have a lot of debt and expenses (all faults of my own) so I still have no pot to piss in!
Same here, I couldnt believe the things he was able to write off!!!! but its still a certain bracketed amount of it they can claim without being questioned- and I still got back more than him, the accountant said its b/c of the house. Like hes in the car business so he can write off multiple leases and the gas- how awesome is that! home phone, cell phone, newspapers, gifts to customers, vacations- I mean it goes on- me on the other hand could only do some of those! It def helps in the type of business too.
Posted by Beth1210
Posted by girlygrl33
See my mom is not married and doesnt own a house/condo- and makes over 100k a yr and she gets slammed with taxes being single and no real estate tax to claim- I cant imagine how bad uncle sam slams your FH with taxes each year being a single man- my DH had that problem till we were married, the house is in my name so I claimed it each yr and made to make 90k a yr- my tax returns were always over 6k , this yr. I stopped working last month so I have half a yr to claim with him so Im curious to see what we get back now as a joint and with the majority of his income(125k). uncle sam *****!!!!
luckily due to the nature of his business he gets a lot of write offs
and he will get to claim me- he is lucky
