[Dr. Howard]

(02-25-2014 12:04 PM)WestCoast Wrote:  

Man. Averages again don't matter.

Run the math guys.

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I like when West Coast is having on "On" day for posting vs. raging at people. This is good advice If a couple is married, their CPA, themselves or tax preparer should run a married filing jointly and married filing separately scenario to see if not averaging incomes will be an advantage.

Remaining unmarried while living under the same roof is the best setup for taxes though it does have some tradeoffs that may or may not matter to the individual. You can't transfer assets to your fake spouse without consideration and there are some estate issues.

Edit: Add on - the 'best' status for a middle income family is actually divorced. Child support does not count as income for the wife on many calculations including social benefits. A man in a relationship with his 'ex wife' on paper could have two homes, food stamps, subsidized housing, subsidized utilities, earning income credit and subsidized daycare because if child support is the vehicle he uses to transfer money to 'her' it has no income implications on her end. There is nothing preventing her from then sharing those benefits with her 'ex husband' or even just re depositing the child support in another bank account. Find me a woman who will go for that arrangement without just leaving on a whim and you've got a keeper. All of the single mom benefits are dependent on an adversarial relationship with the ex spouse. If its a cooperative relationship it creates a flaw that can be taken advantage of.