Should newlyweds file jointly or separately?

Q. My wife and I just got married the last week in December, and we have some really stupid questions and hope you can help us. We both have Ph.D.s, mine is in bioinformatics and hers is in soil science, so we aren't dumb, but we know nothing about finances. Since we were only married a brief time in 2011, can we file married filing jointly, or do we still file as single? Someone suggested we may want to use married filing separately, since I make more money than my wife. My gross income is around $75,000, and her gross income is around $30,000. How should we decide which filing status to use? In addition to this, any other financial tips for newlyweds would be appreciated (other than getting a will, which we don't need).

We will call it even, I have no clue what bioinformatics or soil science involves, and you don't know much about financial matters. You have until April 17 to file your taxes for 2011, and I suggest you locate and hire a good tax preparation professional at least for this first year of filing as a married couple.

Filing status is determined based on your marital status on the last day of the tax year. Since you were married last year, you will file either married filing jointly or married filing separately. Few people benefit from the married filing separately status, but there are some good reasons to file separately. If one spouse doesn't want to or refuses to file taxes, the other should go ahead and file separately. If you suspect your spouse is trying evade income taxes or committing some type of tax fraud, it is best to file separately; if you file jointly you are jointly liable for any tax liabilities, penalties and interest (unless the innocent spouse rules apply). In a few instances, one spouse may owe no tax or get a refund if filing separately, while the other may owe taxes; you need to compare the total tax paid as a couple under both filing statuses. With your discrepancy in income, you may be one of the couples that benefit from filing separately.

In addition to meeting with a tax professional, you should find a good financial planner and an attorney. Even if you don't think you need a will (which you probably do) you need a living will and health care power of attorney. A living will is a written statement of your wishes regarding medical treatments; if you are unable to provide instructions at the time medical decisions need to be made, the statements in your living will should be followed. A health care power of attorney also is needed because living wills are commonly limited to decisions about life-sustaining procedures in the event of terminal illness. A health care power of attorney designates a person to act as your agent if you cannot act; a living will does not appoint an agent. Should you ever lose your capacity to make or communicate decisions because of a temporary or permanent illness or injury, the health care power of attorney lets you retain some control over important health care decisions by choosing a person to make and communicate these decisions for you. The health care power of attorney can apply to all medical decisions, whereas the living will usually applies only to decisions near the end of your life. An attorney also can provide advice on other documents you may need, such as a financial power of attorney.

An objective, knowledgeable financial planner can help you make the right decisions concerning debts, investments, etc. I know I'm biased because I am one, but I would recommend a fee-only planner. They do not sell any products, so they are not motivated to make recommendations that will generate commissions and extra fees; they are paid only by their clients.

Holly Nicholson is a certified financial planner in Raleigh. She cannot answer every question.