Monday I asked one of my coworkers if she'd finished her taxes. She said all she had left was to click "submit". Then she said "I might be getting a divorce". She and her husband both work at my company and have been married for about 3 years. Apparently she saw the confused look on my face and said "I'm serious".
The next day I got more information. It seems they are impacted by the "marriage penalty" . For certain people, being married puts them in a higher tax bracket than if they were unmarried filing separately. She told me she was going to research it but was seriously considering it. Of course, they'd still live together, etc. She said "I know the promise I made before God.". They'd just be divorced in the eyes of the state and more importantly the IRS.
We talked about it again today. She said she going to run some scenarios, but it looks like being married costs them an extra $2000/year in taxes. She is still thinking strongly about the "tax divorce". She said if their tax situation ever changes, they can just "go to the courthouse" and get remarried.
I've never heard of anyone consider this for tax purposes. I know it is sometimes done for other purposes, for example there are "MaineCare divorces". My aunt said they see couples like this who come to her elder law firm. They've gotten divorced so they can qualify. Does anyone know anyone who's done it for tax purposes though?
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