Monday, September 6, 2010

Tax Tips for Domestic Partners

It is good practice to keep separate bank accounts. This seems odd, since most people who are partners end up with joint accounts. Here is the catch. To apply for a deduction you will need to prove that you actually paid for that expense yourself. In the event of an audit where joint accounts have been used, it cannot be proven who actually paid for the expense. So it makes better sense to hold separate accounts. Use these accounts to pay for your expenses that you will deduct at tax time. This way there is no confusion as to who actually paid them.
If your partner does not work you can claim him or her as a dependant for an extra exemption. To do so your partner must have been living with you for a year, have income less than the personal exemption amount and receive at least 50 per cent of their total financial support from you.


Source: http://business.ezinemark.com/state-income-tax-filing-online-is-the-best-way-for-us-tax-payers-16b9d1c8979.html

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