# Question about Retirement Cheques



## Keesha (Jan 6, 2019)

If you are married and receiving ‘retirement cheques,’ have you done income splitting to save on  the income tax?


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## C'est Moi (Jan 6, 2019)

I don't know how it works for Canada's income taxes, but we just file "married, filing jointly" and claim all our combined income from all sources.


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## Keesha (Jan 6, 2019)

Oh right. I forgot all the different laws around the continent. 
In Canada, instead of receiving one cheque , you have the option income splitting which saves a fortune on taxes and it’s all legal. Instead of receiving one cheque, you get two; one for each spouse. 
I figured it would be available in the states. Anyway, it’s well worth looking into.


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## mathjak107 (Jan 7, 2019)

irrelevant here in the states  , each get our own checks .....  we either can  file married jointly by household income or married individually  with our tax system . it takes some real unique circumstances for not filing jointly to work out better . filing jointly is the better choice 99% of the time here .


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## Keesha (Jan 7, 2019)

That’s very odd because income splitting for us saves us about $12, 000 to $15,000 a year.


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## mathjak107 (Jan 7, 2019)

odd ?  your in canada .... this is america !!!!!!  the tax systems have nothing to do with each other.

in rare circumstances  filing separately may help you save on your tax return.

For example, if you or your spouse has a large amount of out-of-pocket medical expenses to claim and since the IRS only allows you to deduct the amount of these costs that exceeds 7.5% of your adjusted gross income (AGI) in 2017 and 2018, it can be difficult to claim most of your expenses if you and your spouse have a high AGI.
Filing separate returns in such a situation may be beneficial if it allows you to claim more of your available medical deductions by applying the threshold to only one of your incomes.

*Consequences of filing your tax returns separately*

On the other hand, couples who file separately receive few tax considerations. Separate tax returns may give you a higher tax with a higher tax rate. The standard deduction for separate filers is far lower than that offered to joint filers.


In 2018, married filing separately taxpayers only receive a standard deduction of $12,000 compared to the $24,000 offered to those who filed jointly.
If you file a separate return from your spouse, you are automatically disqualified from several of the tax deductions and credits mentioned earlier.
In addition, separate filers are usually limited to a smaller IRA contribution deduction.
They also cannot take the deduction for student loan interest.
The capital loss deduction limit is $1,500 each when filing separately, instead of $3,000 on a joint return.


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## Ken N Tx (Jan 7, 2019)

SS and Income Tax are 2 different animals..The thread is about retirement checks not income tax..


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