Author Topic: Married filing separate state return / should I open a single taxable account?  (Read 617 times)

terran

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This year my wife and I moved to a state that allows one to file as married filing separately regardless of how they file their federal return. It appears that this will save us a few hundred dollars compared to filing a joint return, so I expect we will. My wife's income is significantly more than mine resulting in my marginal rate being much lower than her's (around 1/2, but still only 2-3%).

I'm wondering if it might make sense for me to open in brokerage account in my name only so capital gains could be assigned to me alone? What about our current joint account -- any way to remove my wife without a taxable event so we could harvest some gains and only pay my (lower) state tax rate (we would be able to keep the gains within the 15% federal bracket). The account is with Fidelity if it matters.

Any concerns we (especially my wife) should have about this plan/scheme? Presumably and account in my name only gives her some amount less ownership of the money? Or does the fact that we're married take care of that since what I own, she owns?