March 18, 2013

Mrs. Chris Akers
Mr. Andy Prizler
2000 Monument Ave
Richmond, VA 23220

Filing Status

Dear Chris and Andy,

I’m writing you in reference to the marriage tax penalty for your 2011 taxes. My advice is based on our conversation last week and the information you sent. Chris is 29 years old with a salary of $95,000 and Andy is also 29 years old with a salary of $15,000. Both Andy and Chris have good sight. You two have an interest income of $1,900 and $800. Chris’s state and local taxes were $8,500 and Andy’s were $1,700. Lastly each contributed to charity, $5,600 for Chris and $200 for Andy. Please review your numbers with my result, and send me any corrections immediately.

Most experts agree that married filing jointly is usually the most advantageous, they also point out certain circumstances where filing separately is more beneficial. Some couples choose to file separately for private reasons. One party may not want their spouse to know how much money they are making a year. Some couples may file separately in order to deduct medical expenses. Un-reimbursed medical expenses can’t be deducted unless they exceed 7.5% of your adjusted gross income, and if you are claiming two incomes as one, it’s harder to hit that number. However, if you file separately you have two smaller incomes to report -- each with more of a chance of claiming that deduction. And finally some may file separately because of marital strife. If your relationship is rocky and