Can I make gifts to my spouse to equalize our taxable incomes?
April 30, 2012 7:48 AM Subscribe
My wife and I file our federal taxes jointly but our Iowa taxes separately. She works part-time and has a fraction of my income. It appears that we would pay lower state taxes if our income was split more evenly between us. Can I make gifts to her (of cash or perhaps shares), deduct them from my taxable income, and add them to her taxable income?
posted by East Manitoba Regional Junior Kabaddi Champion '94 to Work & Money (7 answers total) 1 user marked this as a favorite