…5, 4, 3… Year-end planning and the countdown to matrimony

December 29th, 2010 by Joe Kristan

If your beloved has commitment issues, maybe it’s time for a little year-end tax planning.
20101229-1.jpgIt’s a quirk of the tax law is that your filing status on the last day of the year is your filing status for the whole year. You can be footloose and fancy-free for 364 days, but if you exchange vows on December 31, you’re just as married for 2010 as far as the tax law is concerned as a couple celebrating their 50th anniversary.
That can be good news for a couple where only one of the pair has significant income — for example, a couple where one member is supporting the other through medical school, or (shudder) accounting school. A year-end wedding for Iowa couple with a $50,000 earner and a non-earner could mean an extra $2,700 2010 tax refund.
Sadly, it works the other way for two-earner couples, but it’s probably too late to get a divorce done by year-end.
We’re 2010 counting down year-end planning tips all week. Catch all the fun!
Flickr image courtesy Corey Ann under Creative Commons license


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