my husband is a freelancer and I do not think he follows the best practices. We keep all our assets separate. NO I do not have a pre nup. What is your advice
2006-09-24 08:14:33 · 11 answers · asked by justthetwoofus 3 in Business & Finance ➔ Taxes ➔ United States
<< do not think he follows the best practices. We keep all our assets separate>>
Hmmm...this doesn't sound good.
Communication is important, so you both need to get on the same financial page.
That being said, your optimal filing status depends entirely upon your situation. Most cases, filing jointly is better. But your case may be different. Just try both (TurboTax can let you try both scenarios) and see which is better.
Good Luck :-)
2006-09-24 08:23:38 · answer #1 · answered by The ~Muffin~ Man 6 · 0⤊ 1⤋
I take it you're asking for tax advice, not marital advice. You could figure your taxes both ways, separately and joint, and then see which is more beneficial for you.
I'm not sure what 'not following best practices' means exactly, but he needs to keep records that are accurate enough to file a tax return that is correct. You don't want to live in fear of an audit. In fact a tax audit would, ideally, be NO problem whatsoever.
Also, if he has the kind of job that requires that he bill clients for work performed, PLEASE review his procedures and accounts payable, to see that he is actually getting paid for work he's done. I've seen too many people agree to the work and the price, then they do the work, but they somehow just don't get around to sending the bill. Or if they do send a bill and it does not get paid, they don't do any follow up. Those are NOT good business practices!
2006-09-24 15:33:37 · answer #2 · answered by Carlos R 5 · 0⤊ 0⤋
If you file separately you can loose out on a lot of credits. But if you don't think that he is going to file on the up and up you better file separately!!! If you file a joint return than you have signed on responsibility for any debit that might be caused by his actions if he were to get audited. So in the long run you would be better to file by yourself!!!
2006-09-25 15:27:59 · answer #3 · answered by jen 4 · 0⤊ 0⤋
It sounds to me like you don't trust the man, why did you get married? If you don't, I would file separately, but be advised that you still might get nailed by the IRS if he tries to screw them. The most common downside to filing separately is that you will pay a lot more taxes. You are required to pick up half of the combined income and you can have half of the expenses as deductions. But to reward you they let you pay 50% more taxes.
2006-09-24 15:34:27 · answer #4 · answered by Scott K 7 · 0⤊ 0⤋
Financially, only considering income tax for the year, filing joint is almost always better (results in a lower tax). But under the circumstances you describe, you'd probably be wise to file separately, since then you won't be responsible for any tax deficiencies that he has.
Good luck.
2006-09-24 22:56:35 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
If you are talking about taxes, definitely file separately. This will save you much grief should he be audited. Been there and did that and it saved me a lot a grief, especially once we were divorced. Not to wish you bad luck, but problems with finances can really make a marriage sour.
2006-09-24 15:23:46 · answer #6 · answered by ValleyViolet 6 · 1⤊ 0⤋
see a lawyer.
why do people marry bad people and don't think they are responsible
want the goods not the responsibility for the crime
he needs to be a corporation with insurance so family not liable or divorce and live in sin and safety. doesn't sound like morals are part of your decision or you wouldn't have married with the income from his unsavory "practices"
tax filings don't change liability
2006-09-24 16:00:27 · answer #7 · answered by macdoodle 5 · 0⤊ 0⤋
well generally you get a better deal if you file jointly, but you should talk to a tax professional about it; you could even go talk to them by yourself if you don't want your husband to know what you think of his financial practices ;-) there should be free or at least inexpensive services around (wal-mart does it; the state usually has a place set up; there's always h&r block, which even has online help now, etc).
2006-09-24 15:22:56 · answer #8 · answered by KJC 7 · 0⤊ 0⤋
Do you itemized your deduction? do you own a home? when filing marry separate this is the headache on this return. one of you may be getting SC***ED because if one itemize deduction the other must as well.
2006-09-26 10:45:32 · answer #9 · answered by Kenshin 5 · 0⤊ 0⤋
drop him things will never change. put yourself and your feels first I know its hard but you can do it keep your head up
2006-09-24 15:18:49 · answer #10 · answered by amj4_ever 1 · 0⤊ 0⤋