Learn how marriage can lead to changes in tax filing and returns at H&R new change that you need to know about before filing that tax. Marriage can help reduce the tax burden for married couples who file jointly. This one is simple: If the spouses have to file just one tax return, there's a good. For couples who said “I do” during , this tax season means they'll file their first tax return as a married couple, which often triggers different.
Tax Planning for Newlyweds Will getting married cut your tax bill or will you fall victim to the marriage tax penalty? Uncle Sam is sure to be an uninvited guest at your wedding. You can count on your tax situation being high on the list of the things in your life that change when you tie the knot.
You've undoubtedly heard about the marriage-tax penalty, the quirk in the tax law that makes a married couple pay more income tax than they would have to if they remained single.
Here's a little secret: Most married couples get a marriage bonus and pay less income tax than they would if each partner were single. At issue is the graduated nature of the tax rates, which applies higher tax rates to higher levels of income. When you pile one income onto another on a joint return, it can push some of that income into a higher tax bracket.
Over the years, Congress has made important strides toward alleviating the marriage penalty. Advertisement As higher incomes fall into higher brackets, though, the breakpoints on a joint return aren't quite double the level on a single return. That could impose a marriage penalty, but it doesn't guarantee one. The more unequal the spouses' income, the more likely that combining them on a joint return will pull some of the higher-earner's income into a lower bracket.
That's where much of the marriage tax bonus comes from — the fact that one spouse often makes much more income than the other. How you'll fare depends on how your income compares with your husband's or wife's. Filing Status If you do face a marriage penalty, you can't get around it by continuing to file as a single person.
If you're legally married as of December 31, you're considered married for the full year and must file as either married filing jointly or married filing separately. The married filing separately status rarely works to lower the family tax bill. You can't, for example, game the system by having one spouse itemize and claim all the deductions while the other claims the standard deduction.
Both husband and wife must either itemize or use the standard deduction. You can't mix and match. All prices are subject to change without notice.
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Professional Tax Advice for Newly Married Couples - ITP
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Here comes the bride…..and some changes to your tax return
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Tax Planning for Newlyweds
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