is it illegal to marry for tax purposes only?

Question

I heard taxes were cut waaaaay down if you are married in comparison to those who are single. If you decide to marry a person for tax purposes only, (meaning you are not living with them and chose not to take their last name, but go through the ceremony at the courthouse) is that still Legal in the united states? Can you still file together? If it is illegal, is it punishable with jail time? How can the IRS find out anyway?

Answer 1

Even though it is illegal to get divorced to save on taxes (believe it or not) assuming you continue to act like a married couple (live together, share each other's income, etc.), it is not illegal to get married to save on taxes. Keep in mind, the document that says you are married also has other stipulations such as a financial commitment to each other. Your intentions may be strictly to save on taxes, but are you sure your spouse's are equally directed? What do you think will happen to your possessions after a divorce? Assuming you have a platonic relationship and permit each other to date, all your spouse needs is proof that you are "cheating" and the divorce could be downright messy.

Finally, you are probably a bit misdirected in thinking that a married couple gets better tax advantage over two single people. It may be better than it was before 2005, but rarely do I find a married couple whose tax return is significantly better than it would be if they were still single. If the one spouse earns very little or nothing, then maybe. But, if you are both earning reasonable incomes, you are probably better off or at least equally off being single. Is it really worth the risk of a bloody divorce?

Answer 2

Married For Tax Purposes

Answer 3

While the "marriage penalty" has been eliminated or reduced at the lower brackets, there is still a penalty for marriage at higher incomes. There is not a tax break for married folks and some pay more than two singles.
I have never seen anything that would prohibit marriage for tax purposes since it frequently leads to higher tax.
Fun fact: There is reference in revenue rulings to a "sham divorce." The term comes from a case years ago when a highly compensated married couple took an annual Christmas vacation to the Bahamas. They obtained a legal divorce and since they were single at year end both filed as single. They remarried each January. The tax savings more than paid for the vacation. The government was not amused and required them to file as a married couple. The term "sham divorce" entered the tax code.
You may marry for any reason you wish, but a repetitive divorce for tax reasons may raise questions.

Answer 4

I have never hear of such a thing, If would be actually be a funny statement if it weren't so sad to feel that TAX in this country has gotten to a point where people have to change the way they live to lower their taxes.

The IRS does NOT care for whatever reasons you get marry. No more then they do about why you get divorce. That the Job for the INS or in this current administration CIA.

Answer 5

Your taxes aren't cut down when you get married. When it starts making a difference is when a married couple starts having children. Without children, they are essentially get the same tax benefits that single people do. Some people, depending on how high their income is, even pay more taxes after they are married. So, unless you plan on having kids as well, you're just wasting your time.

Answer 6

It is not illegal. However, the difference in taxes for married and single is getting smaller. Congress has been attempting to eliminate the "marriage penalty" as well. Getting married to avoid taxes (not did not say "evade") might save some money in the short term, but when you finally meet someone whom you do want to marry, the divorce could easily eat that savings up.

Answer 7

It is not illegal. Keep in mind that marriage can be trouble in other ways, though. Especially if you're in a community property state.

I encourage people to get married for tax purposes. It is ridiculous that single people pay more. Please, somebody... justify charging single people a higher tax rate. What? With a 50% divorce rate, do we really want to encourage marriage with tax breaks?

One question, though. Don't you have to consummate a marriage in order for it to be valid? If so, and being good law-abiding citizens you do, just for tax reasons, does this mean that your screwing so you don't get screwed by the government. (I had to say it!)

Answer 8

No. Citizenship via marriage is not any longer computerized. the merely piece of reliable information right here's that the very undeniable truth that you've a baby at the same time makes it truly a lot less likely that the authorities will imagine that the marriage is a sham meant to allow him to stay, and deport him in basic terms for that reason. besides the very undeniable truth that it is not completely no longer accessible for someone who's married to a U.S. citizen to change right into a citizen, it truly is vitally complicated, no longer computerized, and in many situations better sturdy than it may were if the fellow changed into no longer married. also, in virtually all circumstances, it isn't accessible to make an unlawful alien right into a citizen. in case you want to attempt, the first step is for him to go away the U.S., get permission to re-enter the U.S. legally from a area outdoors of the U.S., and go back to the U.S. legally as a non-citizen.

Answer 9

I don't think it's illegal but seems like it wouldn't be much help to you anyway. If you're "married" but still living in separate households... doesn't make sense. And I don't think that taxes are cut waaaay down. I didn't notice much of a difference in my taxes after I got married as opposed to before. It's still all based on your income.

Answer 10

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