The Implications of Marriage and Divorce on Taxes

In reality, there is a high percentage of people in the United States who pay the IRS more than what is required from them. This can be likened to giving away your hard-earned money while getting nothing in return. Fortunately, you can take steps that will help you hold on to more of your money. As what most people would say, the best defense is an offense. Moreover, the more educated you are, the higher are your chances of keeping your hard-earned money.

Although it is different for everyone, many people eventually gain a basic understanding of their taxes and the procedures in filing them on an individual basis. However, after getting married, they fail to take note that there will also be adjustments in their tax status. Aside from not educating themselves with the different tax benefits, people are misinformed as well; these misconceptions come from their parents who also didn't know better.

Perhaps the most usual misconception is thinking that married individuals are only responsible for half of the taxes owed in the joint income tax return. While this line of thinking has a reasonable bearing, the IRS provides different set of rules for this type of income tax return. When you apply for a joint income tax return, you and your spouse are both bound by several joint liabilities. Simply put, you will be burdened with paying the entire tax due if your spouse decides to leave.

It is also incorrect to think that if you marry someone who has tax issues prior to the marriage, you will be saved from the burden of paying for it. This is partially correct, but if you live in one of the nine community property states in the country, then it is absolutely not true. Your assets and incomes become community property if you get married. This is loosely interpreted to mean that fifty percent of her income is yours, and vice versa. The IRS can actually put a levy on half of your paycheck if your spouse can't settle his/her part of the debt. In addition, refunds which you could have been entitled to will be forfeited as the IRS will utilize that amount to cover for unpaid taxes.

Erroneous beliefs also revolve around taxes and divorce. Others think that the total tax due shall be shouldered by the ex-spouse if the couple gets a divorce. Unfortunately, IRS guidelines don't honor divorce decrees. When a certain portion of the tax due isn't paid, the IRS will go after the person who is more capable of paying and who is more accessible. The divorce decree, however, may be considered as evidence in cases when you have sought professional assistance to enforce some courses of action (relating to IRS issues) to an ex-wife or ex-husband.

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