Ok, my husband and I make about the same money so our tax advisor told us we should claim married with the higher income. It’s a killer because I’m missing out on about $200 net each paycheck now. Do you think this is the right thing to do since we both make decent salaries and they are very close, aside from our bonuses? By the way- we are in CA.

This could be good advice but it depends on so many factors.  Generally congress tried several years ago to make sure that if your income was less than $130,000 combined you wouldn’t have what is called a marriage penalty.  There are a lot of things that could affect that general rule.  Can you tell me what your approximate income is?

Do you own a home? 

Do you have other income investments or rentals? 

Is this the first full year you will be filing joint for the whole year? 

Did you owe tax for 2010? 

Let me know the answers to these questions and I will be able to take a better guess as to whether your guy is right. 

This blog is a collection of questions from clients and the answers.  The goal of the blog is not to answer the questions you might have.  Most times the answers are based on each client’s personal situation.  Please do not rely on thisinformation to make important financial and tax decisions.  The advice presented here is presented to give examples of the type ofinformation you get as a client of a true tax professional, like Ray Simmons and the preparers he employs.  Advice regarding similar issues for you should be based on your personal situation. 

 Treasury Department Circular 230 Notice. “To ensure compliance with Treasury Department Circular 230, prospective clients are hereby notified that: any discussion of Federal Tax Issues contained or referenced to in this communication is not intended or written to be used and cannot be used by the prospective client or investor for the purpose of avoiding penalties that may be imposed on them under the Code.” Such discussion is written in connection with the promotion or marketing by Ray Simmons Corporation of the transactions or matters addressed in this correspondence


About taxdude8422

Basically I am just a tax nerd, have been all my life. However I have found the more open you are to opportunities the better off you will be in this world. That makes my what is know as an open networker on Linkedin, I will connect with anyone. I am not an expert on Linkedin by any means but one day when I was asking someone to connect I mentioned that I had just been refilled on invites. My new connect asked how I did that. I used that same line for the next month and got asked the same question four times. I started thinking there was a lot of little things it took my sometime to learn. Through this blog I plan to share some of those "Linked Secrets"
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