As if relationships weren't complicated enough, we're forced to add math, paperwork and the IRS into the mix this time of year. It almost makes us want to take our chances and hide from Uncle Sam on a tropical beach somewhere. But before plotting your own escape, consider these six big tax mistakes that couples make—and how to avoid them.
Paul and Judith have been together for 17 years. They live together, renovated a house together, and share a home workspace. But they are not married. "Neither of us has ever been married, and we don't intend to marry each other. There are no practical reasons to do so—no kids (unless you count our elderly diabetic cat, Julius), no employer-paid health insurance—and several tax-related reasons not to." Nonetheless, they face the same financial strains and decisions that a married couple comes up against. This is the story of how an unconventional couple manages their finances, and why they've chosen this path.
Being the child of a divorced family, I got to see first hand how lawyer bills stack up and how a woman's scorn can lead to a man sleeping in a car without money, food, or change of clothes. With this memory in mind I prepared myself for the unfortunate event that my wife and I would split. Little did I know that my earnest preparation would become fuel for the flame of an almost divorce. It all came out during tax season.
Why it's imperative for married women to look at their joint tax return.
Every couple needs to examine the pros and cons of how to file on their own and if the stress of it all becomes too much, you can always dig into that frozen wedding cake a few months early.
