The Honeymoon is Over

AFTER BEING MARRIED FOR 44 YEARS, A MAN TOOK A CAREFUL LOOK AT HIS WIFE ONE DAY AND SAID, "DARLING, 44 YEARS AGO WE HAD A CHEAP APARTMENT, A CHEAP CAR, SLEPT ON A SOFA BED AND WATCHED A 10-INCH BLACK AND WHITE TV, BUT I GOT TO SLEEP EVERY NIGHT WITH A HOT 25-YEAR-OLD GIRL.

NOW I HAVE A $500,000 HOME, A $45,000 CAR, NICE BIG BED AND PLASMA SCREEN TV, BUT I'M SLEEPING WITH A 65-YEAR-OLD WOMAN. IT SEEMS TO ME THAT YOU'RE NOT HOLDING UP YOUR SIDE OF THINGS."

THE WIFE BEING A VERY REASONABLE WOMAN. SHE TOLD HIM TO GO OUT AND FIND A HOT 25-YEAR-OLD GAL, AND SHE WOULD MAKE SURE THAT HE WOULD ONCE AGAIN BE LIVING IN A CHEAP APARTMENT, DRIVING A CHEAP CAR, SLEEPING ON A SOFA BED AND WATCHING A 10-INCH BLACK AND WHITE TV.

Tax Savers,

The honeymoon's over

What newlyweds need to know when they first file taxes together

Getting married is one of those life-changing events that affect many aspects of a person's life -- right down to his or her tax returns.

After tying the knot, your single filing status goes the way of the little black book. If you wed in 2009 -- even if it was on Dec. 31 -- you were married all year in the eyes of the Internal Revenue Service.

Couples have two filing status options, "married filing jointly" or "married filing separately." In most cases, married filing jointly is the better choice.

There's a big myth in terms of married filing separately providing a benefit. Much of that has been eliminated under the law. Generally, for the vast majority of couples out there, it doesn't make sense to file married filing separately.

That said, there are some cases when married filing separately does make sense.

For instance, if one spouse has relatively high medical bills and relatively low income, it might be the best option. Medical expenses can be itemized deductions, but the expenses have to be more than 7.5% of someone's adjusted gross income.

So if I have very high medical expenses and a low [adjusted gross income], a separate return might mean I get a big reduction. Whereas if I file with my spouse I may not get to deduct anything in that case separate is better.

Another reason to file separately: Your marriage is on the rocks.

The biggest [reason] is if you don't trust your spouse. If you file a separate return, then you're only liable for your own.

Hopefully, if you were married in 2009, the above does not apply to you.
Know your spouse's tax history

Before going to a tax preparer or filling out paperwork, it's a good idea to have a conversation with your spouse about his or her past tax returns.

You don't have to have an audit of them, but you want to at least at some point discuss tax returns. One big topic of discussion: Whether you often end up with a refund or if you often owe money to the government.

Say one spouse is accustomed to getting a $3,000 refund every year and the other usually pays the government come tax time, he said. It's possible that filing jointly means there's no refund check coming at all -- and for the person used to getting a check, that could be a big disappointment.

And they've made no other change in the world other than they're married.

Post-'I do' tax considerations

Other things for newlyweds to pay attention to:

· A name change. If you changed your name after the wedding, it's important to report the change to the Social Security Administration. The return could take longer to process if your name and Social Security number don't match.

· A family. If you've had a child in your first year of marriage, you'll want to pay attention to child-care credits, dependent deductions and child-tax credits. There is also a credit for adoption expenses.

If you're using a tax preparer bring in a couple of previous tax returns for background. And before you file, take the time to reflect on any changes in the previous year. Did you move for a job, or sell some investments?

Often in the lead up to getting married, other life changes take place. Jot them down and talk about them.

I recommend newlyweds seek out a preparer for the first year they file together. Anytime you have a material life change, you should seek out a preparer... there are things you're going to see for the first time.

Wishing You Many Happy Returns,