Teaming up on Taxes - Newschannel 6 Now | Wichita Falls, TX

Teaming up on Taxes

(Source: KAUZ) (Source: KAUZ)

After walking down the isle and returning from the honeymoon, newly wed couples have to think about how they're going to file their taxes.
    If you got married in January of 2015 or on December 31st , 2015 before midnight, the IRS considers you a married person for the entire year. 
    "That determines your filing status," Gene Nadeau of Liberty Tax Service said. 
    As a married person, you and your spouse have the choice of filing your taxes jointly or separately. 
    Married filing jointly is putting all the income and taxes on one return, or you also have the option at any time to file married filing separately. Each one includes their own income and their expenses on their individual tax returns, Nadeau said. 
    When it comes to deciding which one is better for you as a couple, Nadeau said sometime you have to crunch the numbers. 
    "There are times in which you have to examine the filing both ways and determine which is more advantageous," Nadeau said. 
    Nadeau said some spouses choose to file separately to keep their finances separate. But this does come at a cost. 
    "If you do married filing separate you cannot get earned income credit, you cannot get any education credits and there's other things that effect that," Nadeau said.
    Another reason involves income. Nadeau said it would benefit most couples who have one spouse with a high income to file jointly.
    "The tax rates are more favorable to have the higher earning income being taxed at a marrying filing joint than married filing separate," Nadeau said.
    If you or your spouse have past tax debt, there is an option to file jointly while still protecting the spouse without the debt.
    It's called an Injured Spouse Form.
    "So in that case, then the IRS has the provision to segregate out, or separate out the part and give the one who does not have a debt, part of the refund," Nadeau said. 
    But above all else Nadeau said to make sure you and your spouse communicate about your finances. 
    "You have to be honest about where you end up, what your plans are and what your issue are and how you want to deal with it," Nadeau said. 

Samantha Forester, Newschannel 6

Copyright 2016 Raycom News Network. All rights reserved

Powered by Frankly