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Done for you in 5 minutes.
A customized legal contract that outlines how you and your partner will allocate tax deductions, credits, liabilities, and refunds. Walk away with a clear, professional agreement that protects both parties and ensures smooth tax filing.
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When you build a life with someone without being married, the tax code doesn't automatically protect your shared financial ecosystem. A Tax Sharing Agreement is a vital tool for unmarried couples who cohabitate, own property together, or share significant expenses. It clearly defines who claims valuable deductions like mortgage interest, who gets the child tax credits, and how joint refunds or unexpected tax liabilities are split. You need this document long before tax season arrives, particularly if you have unequal incomes or are purchasing a home together. A great agreement isn't about anticipating a breakup; it is about establishing financial transparency and fairness while both of you are on excellent terms. It acts as a clear roadmap that eliminates awkward conversations and prevents double-claiming deductions, which can trigger painful IRS audits. By documenting your mutual decisions, you protect both of your bank accounts and ensure your collaborative household runs smoothly and equitably.
Yes, a properly executed tax sharing agreement is a legally enforceable contract under state law. While the IRS does not directly enforce private contracts, the agreement protects you in civil court if your partner violates the agreed-upon terms.
Yes, you can split the mortgage interest deduction, but the total amount claimed between both returns cannot exceed 100% of what was paid. Your agreement should specify the exact percentage each partner is authorized to claim to prevent IRS audit flags.
Many couples use a proportional split where the refund is distributed based on each person's percentage contribution to the household income. Alternatively, you can agree to deposit the entire refund into a joint savings account designated for shared living expenses.
Your agreement should include a clause requiring both parties to provide necessary financial documentation to resolve the audit. It should also outline how any resulting back taxes, interest, or penalties will be financially divided if the audit stems from a shared asset.
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