Most wives sign and don't give it a second thought. In fact, they are relieved that they don't have to be involved in what they consider to be, like mowing the lawn or cleaning out the garage, their husband's job.
But "Sign here Honey" may be three little words that can come back to haunt you if you are ever divorced or widowed. Whether the return is prepared by your husband, an accountant or H.R. by signing the return,the government assumes that you understand what you're signing and agrees that it's accurate.
My friend Betty earns a six figure income with a large corporation. She manages huge budgets and financial commitments affecting hundreds of employees. But when it involves her marital finances, Betty reverts to the traditional role of wife. Her husband Mike manages the finances at home, works with the accountant to prepare the income tax return and brings it home just in time to get it mailed before midnight on April 15. Betty signed the tax return year after year, glad that Mike was taking care of what she considered to be an overwhelming job.
During her divorce proceedings a few years ago, Betty was asked if she saw the tax returns annually. She did. Did she review them? She claimed she didn't need to because she trusted her husband and assumed he knew what he was doing. Wasn't she concerned about what she was signing? No. Three years after their divorce was final, Betty was wrangling with the IRS. Did she have copies of the returns that she signed? No, she didn't. If she had looked more closely or asked some questions about things she didn't understand, she would have understood that her husband was reporting less income than he actually earned.
Betty protested that she didn't prepare the return, that she relied on her husband and wasn't aware that the information was not accurate. No matter - It's nothing personal. Community property law requires that she repay the government half of the taxes owed when she was still married. She owed the government $75,000, far more than she could comfortably manage now that her lifestyle was so different as a result of her divorce.
If you're not interested in the tax return, you should be. It's an integral part of your marriage and will give you a closer look at what's really going on financially in your marriage. You might discover that your husband has more income than you thought. You might find an IRA or a KEOGH plan that you didn't know about. If you find out after a divorce or your husband died about a business partnership he had, that would affect you financially and not always in your best interests.
Tax time is a good opportunity to learn about investments which belong to both of you, but which you typically don't pay attention to because your husband is the one who interacts with the broker.
How do you learn more? Ask your husband for one thing. Husbands aren't necessarily trying to hide things from you by doing the taxes. They do them because you may want or expect them too. You'd be surprised how many husbands are pleased when their wife shows interest in what's going on financially.
If an accountant is doing your joint return, attend the meeting with your husband. This is a good place to ask questions because the accountant can explain things to you that even your husband often doesn't understand. The point is, you have to ask, especially if you've made it a point not to be involved over the years.
"Sign here Honey" takes on a totally different meaning when you're participating as an informed partner.
Copyright (c) 2008 Helga Hayse
There are many ads online on companies offering to help you or prepare for you your tax return. But if you are the type who is even afraid to give out your credit card number on some shopping site shouldn't you be scared to give out more information about you such as your social security number, your income, source of interest, dividends, investments, your job data, information about your spouse, children, etc. and other relevant data on the internet?
It is true that there are many hackers online who are out to obtain secure information and files. In fact, there have been reports of IRS not being that secure as well since they have lost returns but these were in the past. But if indeed it is not that safe to be giving secure information online and to be having these online companies prepare your return for you, then these companies shouldn't have existed in the first place.
Many of the online companies offering tax preparation services offer affordable prices for their basic preparation but as your return gets complex then the prices start to rise. A price quote is important before your return is actually processed. At least, you get to back out or decline if you find the price to be steep for your actual budget. You should do this before you transmit your return otherwise you will be subjected to pay for the charges. If the price gets too high, you might be better off meeting with a professional face to face.
It would be wise when having a quote to initially not use your own social security number or actual address for example until you are satisfied with the computations, the process and the price. Only then, should your provide your true data in order to provide the necessary protection early on.
If you must file online, choose companies that are large and established most especially those who have the ability to create and develop sites that are secure. It is also important that they have the pockets to sue in instances when their security has been breached or secured information has been stolen from them. There are actually major online processors with which IRS have made arrangements to offer free services especially for certain taxpayers that need help. IRS also has other Alliance Members.
It is advised that you stay away from companies that have only been in existence for a short period of time. It should have a contact number of their office as well as an address. Search for them online and try to find out if there have been any complaints about their services.
Both Helga Hayse & are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Helga Hayse has sinced written about articles on various topics from Health, Personal Finance and Health. Helga Hayse leads a seminar called "A Wife's Guide to Financial Intimacy." She was already teaching other women about marital finances when her husband died suddenly in an accident. She based her book "Don't Worry About a Thing, Dear"- Why Women Need Fina. Helga Hayse's top article generates over 9900 views. to your Favourites.
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