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Extreme year-end tax planning: tie (or untie) the knot

December 24, 2008

As nice it is to save taxes, some folks consider other things more important. If you can believe that. But if your tax life is everything for you, extreme year-end planning strategies may come to mind

For example, your marital status on the last day of the year is your tax status for the whole year. Many one-income couples will save taxes filing a joint return. And this is such a romantic time of year. Why wait until June for a big wedding when you can tie the knot now for a tax break?

Alternatively, marriage can still be costly for two-earner couples. A quick trip to Vegas might enable you to file singly for 2008. As a practical matter, though, I think divorce takes more paperwork than marriage (I wouldn't know personally), so it may be a bit late to do this for 2008. They don't say "marry in haste, repent at leisure" for nothing.

Now either of these strategies require a certain amount of, well, cooperation, and I'm sure they aren't for everyone. I have no good advice on how to broach the subject ("Honey, I know how we can pay for that new vacuum cleaner you need!"). But if taxes are that important to you, maybe your future (present?) spouse deserves the warning.

Tags: year-end tax planning.