View Single Post
  #5 (permalink)  
Old 08-20-2016, 11:09 PM
stripes stripes is offline
Senior Member
 
Join Date: Feb 2013
Posts: 2,838
stripes is on a distinguished road
Default

You use your most recent income information to calculate your share of S7 going forward. For most people, their most recent income information is the previous year's tax return (line 150). So if your 2015 incomes were in a ratio of 45/55, you use that ratio to determine who pays what in 2016 (even though your actual 2016 income may be different from your 2015 income). After you do your 2016 taxes, that ratio takes over, going into 2017. In other words, the S7 ratio is always lagged about a year behind the actual expenditures (exact lag depends on when in the year you exchange financial info). Is that what you were asking?

(I know there are some other ways to calculate income ratios, but this is the most commonly used).
Reply With Quote