Investment strategy - tax burden

USA Discussion in 'Individuals' started by micromoore, Jun 13, 2018.

  1. micromoore


    Jun 13, 2018
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    Hi. I am opening an Investment account and have 2 tax strategies. Either open it in my wife's name only or open it jointly. Here's the specifics:
    1. We are not technically married. We live in Texas and can be common law if we choose.
    2. I make 100K/year and she has no income. Currently, I file as Single and she doesn't file.
    3. There would be no other income besides my salary and the Investment income.
    Which strategy is better for keeping the tax burden at its lowest. Thank you!
    micromoore, Jun 13, 2018
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  2. micromoore

    kirby VIP Member

    May 12, 2011
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    If it is in your wife's name, then income for fed tax is hers if she files separately from you and so is taxed at lower rates than if that income got added to yours, which has a higher tax rate.
    kirby, Jun 18, 2018 at 7:12 PM
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