It’s June. I know. But, it’s not smart to wait until December to consider what tax rules or practices have changed. Both of these two changes I will discuss today affect my clients; I am sure they will affect many of you.
We know that filing jointly typically saves couples money. For example, you can’t deduct child care expenses, should you file separately. (Of course, if you are in the top 2% of earners in the US, you won’t be able to deduct those costs whether you file jointly or separately.) That’s but one savings. There are many others. But, that’s not really the topic for today. I want to remind you all that filing jointly means that both parties are responsible for the tax filing, the tax debt, and any omissions or errors- regardless of who made the money, who computed the tax return, or who got to make the decisions demonstrated on the form. Typically, the problems start due to one of two circumstances- the couples are separating or the IRS has decided that the tax return is questionable. There may be relief. There is a document, the Request for Innocent Spouse Relief, Form 8857, that can relieve one party from these joint obligations. However, there are considerations to its use. Some of these considerations include: Continue reading Tax Tips in June? Yes- you need to know!
