Taxpayer asks:
Last year, I moved in with my boyfriend at his condo. He lost his job so I paid most of the bills. I paid the mortgage direclty for most of the year. I also paid some of his credit card bills, the car payment and some of his child support paymnets so he didn’t get behind again. Can I take any of these things off on my taxes? Would it make a difference if we got married?
Taxgirl says:
You cannot deduct the cost of credit cards and car payments for personal use. Personal loans are never deductible.
Child support is likewise not deductible; in fact, child support is considered “tax neutral” (neither deductible to the payor nor taxable to the payee), unlike spousal support.
Mortgage interest is only deductible when you’re legally responsible for the note. Here, you’re clearly not since you indicated that it’s your boyfriend’s condo.
Now for the bigger question:
If you got married, it would only change the mortgage bit in terms of your deductions. Your husband would be able to take the mortgage interest deduction and charge it against your income. You’d also be able to claim an additional personal exemption against your income, assuming he’s still not working. Of course, this would not apply to last year – just this tax year if you got married by December 31, 2009.
I’m actually asked a lot whether it makes more sense to be married – or not – based on taxes. The answer is that it always depends on your situation from a tax perspective, though it tends, under the current system, to be more beneficial to file as married than single. Again, really facts and circumstances dependent.
That said, I run a business with my husband. And as I approach my own anniversary (it’s next week), I can honestly say that a business is not the same as a marriage. In business, you tend to make decisions that are largely based on dollars. In marriage, not so much.
This is not to say that financial decisions aren’t an important consideration in a marriage. It certainly is (you want to think about, for example, whether your potential spouse and you are compatible in terms of how you view money). But marriage is tough enough between two people: don’t drag Uncle Sam into it, too.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
Dear Taxgirl;
Congratulations on your anniversary, and, I guess for running a business with your spouse. My wife and I did it for about ten years. I fired that woman almost a dozen times before she finally went and got a job. Even then, I still couldn’t get her out of my business – and still can’t.
Good thing, too!! She’s a smarter business person than I am, and I really needed (still do) someone to knock some sense into me. Marriage and business complicate a relationship in a number of ways. It’s hard to be partners in the house and the office – too many things cross over that line.
By the way, if I don’t fire her again, we’ll celebrate 30 years of marriage soon!
Rick
Sorry, but Uncle Sam already inserted himself into the marriages of all US citizens. Marriage is very much for Uncle Sam (whether he’s wearing his legal or financial face) and Father Abbot. If we’re only considering only the two people within the romantic couple (especially two people who are already living together and paying each other’s bills), marriage is utterly irrelevant. The piece of paper has nothing to do with love or personal relationships. (If it did, same-sex marriage shouldn’t be an issue). With all the laws and taxes, marriage is a financial, legal, religious, and social institution. Religion and social factors are often not a big issue with people who already live together, so lawyers and accountants should just do their jobs and stick to giving the legal and financial advice being asked for, not trying to inappropriately bring up concerns about the personal relationship between two people who are already living together.
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Yes. An annulment is as if the marriage never happened – and that’s how the IRS sees it. The parties must amend the returns.
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!
Speaking of marriage, if a marriage is legally annulled is it true that the two parties must amend their tax returns from Married Filing Jointly to Single for those years? Sounds like a lot of trouble!