Saving Money and The Relationship
There are two main reasons why over 50% of relationships or marriages go sour:
- Sex (especially infidelity)
- Money (especially financial disagreements between partners).
If your relationship is at risk of extinction, we can help with the money part to save your love! Unfortunatly, we cannot help with the other part. Find a comprehensive overview on children and taxes.
A great way to start is to prepare and e-file your 2022 Tax Return on eFile.com and take the stress out of filing taxes online. The eFile app will guide you through completing and filing the correct form(s) for your tax situation based on your answers to a series of questions. Additionally, find ease when selecting the proper filing status by using the STATucator to determine whether to claim married filing jointly or married filing separately, if applicable. As a married couple, you and your spouse may qualify for different marriage-related tax breaks.
Fact: Money Can Negatively Affect Relationships
Does money outweigh love? According to various statistics, it could:
- The #1 argument among couples is money, according to a University of Denver poll.
- A survey by ForbesWomen and YourTango indicated that 75% of women would turn down proposals from their unemployed boyfriends.
- 88% of women find money important in a relationship, stated by a MSNBC survey and eZine.
- Financial problems amongst married folks is the leading cause of divorce.
There are many considerations when you are part of a family, whether it be you and your boyfriend/girlfriend, husband/wife, or if you add dependent children to your family. With more people in your life to consider, you may face personal and financial problems.
These factors usually cause an unbalanced relationship in money and other aspects, resulting in a breakup:
- One partner saves more money than the other partner.
- A spouse spends more money than the other spouse.
- One significant other often (or always) uses another partner's money.
- One partner becomes single and pregnant and lacks much-needed support.
It may result in troubles in the relationship that could otherwise be avoided by communicating financial concerns and struggles. Saving money can certainly help with some of these problems. See these tips on how to save money during the year:
Work, transportation, and travel | Entertainment, technology, and health
Home, shopping, and food | Everyday expenses, finances, and more
You can also save money on taxes by keeping track of your finances, understanding your deductions, maximizing tax-free income, and using tax software to claim all credits and deductions you are entitled to.
The Marriage Penalty
What is a marriage tax penalty? A marriage tax penalty occurs only with certain state tax returns and not with the IRS of federal income tax return. For example, in a state that has the marriage tax penalty, when a couple files their state income tax return as married filing jointly they will pay more in state income taxes or have a higher effective tax rate compared to if they had filed their returns as two single taxpayers with the same amount of combined income.
As of 2022, the following sixteen states have an income tax related marriage tax penalty. Of these sixteen, Washington state does not have wage income tax, but a capital gains tax with a $250,000 filing threshold. The marriage tax penalty in Washington state exists because the $250,000 limit is not doubled for married filers.
The table below summarizes the 16 states with a marriage tax penalties plus those without a penalty or without income taxes.
California, Georgia, Maryland, Minnesota, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, Vermont, Virginia, Washington, and Wisconsin
Alabama, Arkansas, Arizona, Colorado, Connecticut, Delaware, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, Oregon, Pennsylvania, Utah, Washington D.C., and West Virginia,
No Income Tax
Florida, Nevada, South Dakota, Tennessee, Texas, Washington State (no individual income tax but capital gains tax), and Wyoming
Want to put your finances back on track? Read on to find out how you can balance your money and save your love! Find more money saving tips.
eFile Tax Tips to Help Save Your Love!
Follow these eFile Tax Tips for managing your finances - your relationship - in 2023 which will be less taxing and have more value!
Take control of your personal life relationships, finances, and taxes: follow the tips on this page and keep up with tax planning for next year. You can use this free 2023 Tax Refund Calculator to get a high-level understanding of your taxes.
Related Tax/Love Connections
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