Also in this playlist...
This transcript is automatically generated
The exact day is almost -- -- a big deadline to many Americans still haven't finished their tax returns so if you are.
Working on and you have a question or if you wrote to was with a quite did.
We're here to give you some last minute answers joining me again with some sage advice.
Fox Business network's Tracie burns and wealth help managing director rich -- or so Marcy said in a question.
She -- I got married last June IA make more than my spouse how do we split the in com and deductions.
Tracy to go -- -- -- makes more money here's -- if you may yet cutting it to get there I'm getting -- him -- I want.
I want to be taking on everything cash yes it's a trend I've heard this -- -- a -- Things lightly even if you got yeah well 1 o'clock that's the idea of what happens when you say -- -- unfortunately.
If you want to split things -- you can file separately.
-- come her higher income goes on her return his lesser income goes on his and then they can split they have -- pretty much walk through it.
If she meet some charitable deduction she can take them.
If he did things he can potentially take those but otherwise for the most part -- can split 5050.
There is the very filing joint -- -- single married filing joint and married but that's no single head of household yes.
And -- says that one that almost nobody every uses which Tracy's talked about this married filing separately it seems like it is a night.
There well it is and that's why you like she said you gotta run the numbers both ways because most times I mean the liability is less if you do married filing joint first -- married filing separately.
However there are situations that if you have a large amount of income.
And you can allocate the deductions.
Ways to more -- it more to one spouse than the other you might find that the liability separate is less than if he did it to guy might.
Roy you -- East Coast tax people off because I spent most of my life from the West Coast -- -- community property.
And it gets things really complicated in the community property state it's hugely divorce and community properties it.
Because it's if it's it's 5050 yes it you know.
The one drag analysts say to the man trying separate return -- is that the cut -- for deductions and credits is so much lower C you don't get a lot of stuff like you know so.
That's why joint is most time there's still a better to look tax benefit to be married yeah I believe not yet there -- and other than.
Your happiness of course -- picnic.
-- the -- -- Rosemarie says I added we'll call.
Now I get a nasty divorce last year.
Led by ex spouse will not cooperate and finally in our last joint tax return I can't get the W two info or anything else what do IA.
Do I think hears the case where you do file separately because what's gonna happen is if she don't she doesn't follow at all and you're subjecting yourself to interest and penalties for no filing of the returns -- I think.
You know file separately married filing separately get your return in.
And this week at that clocks you know starting to take on the statue of limitations.
And you know usually a lot better -- the iris happy.
You can -- IRS happy recorded what's income is allocated to you the deduction that are allocated to you.
You filed your return you got that statue limitations running and I think you feel a lot better than -- -- -- -- the IRS guys and gals I've talked to over the years.
They do not want to get in the middle of a divorce -- and -- just -- and disputes about.
Who learned what back so then you start playing -- wobbles from my expenses and then yours X says no -- from my expenses in the IRS is gonna say.
We don't care whose expenses they are they're gonna come after both of you.
Well I think to Rich's point you filed just sit you know send something in -- -- -- located just wants a little attention come tax executed the attention it wants.
Send their return in and then once your ex spouse sits down -- starts to see I think where.
He is gonna end up as he filing that marathon separate he's gonna realize probably we are better off doing this together might even come back under the table and then you can -- Bidders bitter but well alright Matthew says I haven't filed a tax return for five years.
I did not have the money and now I'm way behind and I'm afraid to deal with the IRS.
Have been shot over the years we do this on the radio show how many people call and say haven't filed don't know what to do and I'm scared but this is not uncommon.
Now it is and that is -- but you know pushing an office in the answer either -- mean it doesn't do you any good because I mention the word statue limitations and you know he didn't file then the statue of limitations hasn't begun to run and what that means is the IRS have come out -- -- for ever.
Once you file they have three years to come back and audit you unless there's other reasons for -- But but to -- -- -- questions I don't have the money is well that certainly a common refrain that.
The IRS used to be I think much tougher and they said we are not in the business of being your lender your bank it seems like they've got a little saw.
His -- there's a lot of options personal to -- all the returns let's get the paperwork in right.
And then let's figure out what we know because we could possibly you know if you can you say -- so -- so -- -- can get some of those interest and penalties waived.
Then NE IRS will put you -- payment plan and you come up with the amount you can say look I can only send you fifty dollars a month but you have to be true it has to be detonated -- -- -- cannot.
And that Imus -- -- that you're locked in -- it it actually is not as scary as you thank you just have to come clean and be honest yeah.
-- my experience years ago again years ago was if you go to them before they come to you right.
It's a whole different relationship -- they're glad to see I -- are starting to come.
While I agree and I think it's just you know I think it's a psychological thing that people are afraid of the IRS and in this in this case you know if he didn't make any money perhaps you don't -- anything so unless you've actually done a return you may not -- that we you have to supply -- -- -- -- into if you have a refund coming.
If it's been more than three years that refunds gone right exactly you don't get it yeah I mean people don't know maybe they had over withheld in their income maybe -- had such low income you don't even need to file.
Maybe the liability is so small you didn't realize but at least she'd get that paperwork in the -- and said you start -- clock -- -- -- work.
With the -- file that return -- Robert.
Says I have a client still wants to get married but one person has federal tax liability and their concern the other partner would become part of the liability if they marry.
Forty -- thoughts.
Your personal liabilities your personal liability.
The problem is when you not everything on a tax return if by chance you were getting a refund the government will probably withhold it to pay off that liability so again this might be.
An opportunity to take advantage of the married filing separate again.
Wait let your spouse figure his her tax liability issues out -- separate and then.
When you clean have to come together.
-- deal you deal in in the -- -- of the wealth and health let me you're talking about.
People are getting married that may be one has a sterling credit record the other one does -- whether the dealing with the iris are not here I mean this seems like something that you've got to sort out before you say I do.
I agree with the and it's funny that you said wealth and health because I always use the -- that there's a psychological components so in my mind that's the health part in the wealth part is you know doing what's right and found a return as part of the overall process.
I think hear Tracy and I agree on this that you should file separately obviously there's a discussion be had as far as.
You know the credit risk out there there at the soon to be spouse but.
You should file separately I think just so that you don't start to inherit any other issues that move forward with the soon to be spouse.
And then there's a you know more of another issue on credit whether or not you start to have joint bank accounts and joint credit cards which is beyond the scope here.
But I think he really should file separately and and.
We just said -- if you put your Social Security number and the other Purcell security number of the IRS is all they're gonna see is.
That Social Security number lows as money.
Yeah and look I'm gonna be a mother right now I mean including -- -- Marion let's didn't -- could yeah before you walk down the I'll go to think.
Filter by section