Shared taxes and separate finances
For LGBTQ married couples who typically keep their finances separate, the prospect of filing joint taxes may seem complicated. How do you split the taxes you owe in a way that’s fair for both of you? Get all the answers here.
Hear Harvey’s advice for LGBTQ couples filing joint taxes
What needs to be taken into account when filing a joint tax return?
Harvey Susnick is a partner at Berdon LLP, a leading accounting and consulting firm based in New York City. Harvey has four decades of experience as an accountant and ran his own firm for 20 years before merging his practice with Berdon in 1998. He uses his financial expertise to help individuals, families and couples (traditional and LGBTQ) make informed decisions and create retirement plans that align with their goals.
In this episode of Queer Money®Harvey comes over and speaks Queer money® listener Ben’s question about tax returns as a married couple – if you normally keep your finances separate. He explains the pros and cons of filing jointly or separately and describes how a couple’s income difference might affect their decision. Listen in to learn what to consider if you or your partner is a 1099 and get his top money advice for married LGBTQ couples.
“One of my strict rules was that you couldn’t make life decisions based on taxes.” -Harvey SusnickClick to tweet
Topics covered regarding joint tax returns
Here’s how to decide whether you should file taxes jointly or separately
Joint submission = same or better in most cases
The difference is negligible if both have similar income
Harvey’s options for couples keeping their finances separate
Justify tax responsibility with income distribution
Pay extra to file separately (if you make similar income)
What should you consider if you or your partner employs 1099 employees?
Set aside money every two weeks to cover taxes
Responsible for all 12.4% (no employer match)
How much should 1099 employees set aside for taxes quarterly?
Divide the previous year’s tax liability by 4
Use the tools from Credit Karma Tax
Harvey’s money advice for LGBTQ married couples
Discuss finances to be sure same money side
Don’t make life decisions based on taxes
Our tax advice for Ben and his partner
- Property taxes owed on income split (45% and 55%)
- Evaluate what everyone paid during the year