Professional Freedom Tax Service - We won't file until you smile!
RSS

Recent Posts

IRS investigating Liberty Tax
6 Tax Red Flags That Can Get You Audited
Teach Your Kids About Money (They'll Thank You Later)
Police warn of IRS scams during tax season
Consultant's Corner: Irs Schedule C Audit..

Categories

Economy
Filing a late tax return
Freedom Talk
General questions
Information
Self Employed Individuals
powered by

Tax Service Blog

10 Ways Getting Married Affects Your Taxes

 
1. Filing status. Once you get married, the only filing statuses that can be used on your tax return are married filing jointly (MFJ) or married filing separately (MFS). Your filing status is determined on December 31 of each year, so even though you were not married the entire tax year, you do not have the option of filing as single. Generally, married filing jointly provides the most beneficial tax outcome for most couples. One reason for this is that some deductions and credits are reduced or not available to married couples filing separate returns.
 
2. Tax brackets. Tax brackets are different for each filing status, so your income may no longer be taxed at the same rate as when you were single. When you’re married and file a joint return, your income is combined — which, in turn, may bump one or both of you into a higher tax bracket.
 
3. Additional exemption and increased standard deduction. Married couples filing a joint return get to claim two personal exemptions (one for each of you) on the tax return instead of one as when you filed as a single individual. Additionally, the standard deduction allowed on the tax return is highest for married couples filing a joint return. For 2012, single taxpayers are allowed a standard deduction of $5,950 while married couples filing a joint return are allowed a deduction of $11,900.
 
4. Changing your W-4. Because of the additional exemption and higher standard deduction you are allowed to claim on a joint tax return, it may be wise to change your Form W-4 with your employer to reflect these changes.  Claiming an additional allowance and/or changing withholding to the “married” rate on your Form W-4 means that less taxes are withheld from your pay.
 
5. Buying your first home or selling one. Once you get married, your combined incomes may allow you to purchase your first home or you may choose to sell individual homes owned before the marriage. When you own a home, interest you pay on your mortgage is deductible on your tax return as an itemized deduction. If you’re selling a home, the amount of gain that can be excluded from income doubles from $250,000 to $500,000. Be cautious, though: if only one of you owned the home before the marriage, the $500,000 exclusion applies only if you both live in the home at least two years.
 
6. Itemizing vs. claiming the standard deduction. When you file your return each year, you have to determine if it is more beneficial for you to itemize versus claim the standard deduction. Once you are married and own a home, many people find that it is more advantageous to itemize their deductions — typically because deductions such as mortgage interest result in a higher total deductible amount than the standard deduction.
 
7. Children. A dependent standard deduction is allowed for each child claimed as a dependent on the tax return. This amount is generally $3,800 per child (for 2012).
 
8. Gift taxes and estate planning. Spouses are allowed to give unlimited gifts of cash or other property to one another free of gift taxes. This provision has important implications for estate planning purposes, so be sure to get your estate plan redone once you get married.
 
9. Name change with Social Security. Because your return is filed under your Social Security number (SSN), it is important to ensure that the Social Security Administration has been notified of any name changes that take place. The SSA must process the change in the system and relay that information to the IRS before filing your return. You should wait to file your return until after the name change process has been completed to avoid any complications that could arise if the name on the return does not match the SSN on file with SSA.
 
10. Marriage penalty. A marriage penalty exists when two individuals filing a joint return pay more tax than the sum of their individual tax liabilities calculated as if they were filing as single taxpayers. One reason this occurs is when the MFJ income tax brackets and standard deduction are not equal to twice the single income tax bracket and standard deduction. Under current law, the marriage penalty is partly alleviated because the lower income tax brackets (10% and 15%) and standard deduction for MFJ are exactly double that of single individuals. However, that may not be the case after 2012 as the provision providing for relief from the marriage penalty is set to expire. At this time, it’s unclear if Congress will extend the relief.
 

82 Comments to 10 Ways Getting Married Affects Your Taxes:

Comments RSS
sydney lawyer for car accident on Wednesday, August 28, 2013 2:59 AM
The benefits of having the status of married has wonderfully explained by you through this post. All the ten ways are sufficient to know about the topic is detail way.
Reply to comment


www.akart.com.pl/gadzety-reklamowe-r53.html on Saturday, November 02, 2013 3:15 AM
You've got fantastic information listed here.
Reply to comment


portalfm.net on Thursday, November 14, 2013 4:45 PM
What's a tad bit more, everyone are able to request specific canvases but as well a full a shortage of benefits for
Reply to comment


research papers on Wednesday, December 11, 2013 10:40 AM
I did know that getting married would affect the couple's student aid eligibility, taxes, and more. In many cases, getting hitched can mean big changes in your tax situation, and the sooner you start planning.
Reply to comment


self esteem for children on Monday, January 13, 2014 2:33 AM
very good & decent dispatched comments. I discovered out this much informative, as to what I was unquestionably seeking for. Thanks for such dispatched notes and comprise it up.
Reply to comment


Traction on Friday, June 20, 2014 3:17 PM
Thanks for your valuable information. This information is helpful. Please keep sharing more and more information. Well done!!
Reply to comment


Devices on Wednesday, June 25, 2014 10:31 AM
You're so gifted in writing. God is truly using you in tremendous methods. You're doing a excellent job! This was an awesome blog! Thanks!
Reply to comment


PE on Wednesday, June 25, 2014 10:35 AM
You're so gifted in writing. God is truly using you in tremendous methods. You're doing a excellent job! This was an awesome blog! Thanks!
Reply to comment


Extenders on Wednesday, June 25, 2014 10:42 AM
I love your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you? Plz reply as I'm looking to create my own blog and would like to know where u got this from. many thanks. Well done!
Reply to comment


Acne on Wednesday, July 02, 2014 11:04 AM
Thanks for your valuable information. This information is helpful. Please keep sharing more and more information. Well done!! This is awesome!
Reply to comment


Pills Reviews on Friday, August 29, 2014 5:36 AM
The quantity of details in here is wonderful, as if you essentially had written the book on the topic. Your blog is wonderful for anybody who desires to be familiar with this kind of topic more. Very good information; please keep writing! Great article!
Reply to comment


Devices Reviews on Friday, August 29, 2014 5:54 AM
I am guaranteed to realise that you are all most there.....Really, I have got an wholeheartedly crucial minutia and figures which I wouldn't realise. But now, I have realise about you so, I am cooperative to you. Thanks for sharing!
Reply to comment


Exercises Reviews on Friday, August 29, 2014 6:15 AM
I found this post to be very educational. Thank you for broadening my knowledge of this subject. No doubt its a great piece of writing as well. Thanks a lot!
Reply to comment


Patches Reviews on Friday, August 29, 2014 6:25 AM
Thanks for your valuable information. This information is helpful. Please keep sharing more and more information. Well done!! This is awesome! Great site!
Reply to comment


tag monaco watch on Monday, January 05, 2015 8:11 AM
It is best to participate in a contest for among the finest blogs on the web. I will advocate this web site!
Reply to comment


Pills on Monday, January 12, 2015 2:05 AM
Thanks for your valuable information. Awesome site!
Reply to comment


Patches on Monday, January 12, 2015 2:09 AM
You're so gifted in writing. God is truly using you in tremendous methods. You're doing a excellent job! This was an awesome blog! Thanks a lot!
Reply to comment


Devices on Monday, January 12, 2015 2:11 AM
You've got fantastic information listed here. Thanks for sharing!
Reply to comment


Exercises on Monday, January 12, 2015 2:15 AM
Thanks for your valuable information. This information is helpful. Great article!
Reply to comment


Zachery Resides on Thursday, October 01, 2015 1:55 PM
In typically the sensible introduction?
Reply to comment


Glenn Harens on Thursday, October 01, 2015 2:37 PM
hallway are also in no way uncommon?
Reply to comment


www on Friday, June 09, 2017 11:49 AM
Great article!
Reply to comment


www SizeGenetics on Tuesday, June 13, 2017 11:42 AM
I was very encouraged to find this site. Thanks a lot!
Reply to comment


www on Tuesday, June 13, 2017 11:47 AM
Great article!
Reply to comment


www on Tuesday, June 13, 2017 11:50 AM
Thanks for your valuable information. Great article!
Reply to comment


www on Tuesday, June 13, 2017 11:52 AM
I found this post to be very educational. Great job!
Reply to comment


www on Tuesday, June 13, 2017 11:54 AM
Please keep sharing more and more information. Well done!!
Reply to comment


website on Tuesday, June 13, 2017 11:56 AM
Thanks for your valuable information!
Reply to comment


website on Tuesday, June 13, 2017 11:58 AM
Thanks for sharing this useable article. Well done!
Reply to comment


www on Tuesday, June 13, 2017 12:00 PM
Thanks for your valuable information. This information is helpful!
Reply to comment


www on Tuesday, June 13, 2017 12:01 PM
I was very encouraged to find this site. I wanted to thank you!
Reply to comment


www on Wednesday, June 14, 2017 7:35 AM
Thanks for your valuable information. This information is helpful.
Reply to comment


www on Wednesday, June 14, 2017 7:39 AM
I bookmark your website and will come back in the future. Thanks!
Reply to comment


www on Wednesday, June 14, 2017 7:41 AM
I was very encouraged to find this site. I wanted to thank you!
Reply to comment


www on Wednesday, June 14, 2017 7:42 AM
I was looking for the matter discussed in blog post. Thanks!
Reply to comment


www on Wednesday, June 14, 2017 7:43 AM
You're so gifted in writing.
Reply to comment


vigrx on Wednesday, June 14, 2017 1:30 PM
I was very encouraged to find this site. Thanks!
Reply to comment


www on Thursday, June 15, 2017 3:02 PM
Great article!
Reply to comment


www on Friday, June 16, 2017 3:46 PM
impressive blog to read.. Thanks!
Reply to comment


www on Saturday, June 17, 2017 1:18 PM
Great content!
Reply to comment


www on Saturday, June 17, 2017 2:34 PM
Great article!
Reply to comment


www on Saturday, June 17, 2017 3:10 PM
You're doing a excellent job! This was an awesome blog! Thanks a lot!
Reply to comment


www on Saturday, June 17, 2017 3:39 PM
I found this post to be very educational. Thank you!
Reply to comment


www on Sunday, June 18, 2017 12:51 PM
You're so gifted in writing. Thanks for sharing!
Reply to comment


www on Sunday, June 18, 2017 1:36 PM
Thanks for your valuable information. Awesome site!
Reply to comment


www on Monday, June 19, 2017 3:13 AM
I was very encouraged to find this site. Thanks!
Reply to comment


www on Tuesday, June 20, 2017 3:44 AM
Thanks for your valuable information. Great content!
Reply to comment


www on Wednesday, June 21, 2017 3:48 AM
You've got fantastic information listed here. Thanks!
Reply to comment


www on Friday, June 23, 2017 4:30 AM
Thanks for your valuable information. Great content!
Reply to comment


www on Friday, June 23, 2017 11:55 AM
Thanks for your valuable information.
Reply to comment


www on Tuesday, June 27, 2017 11:28 AM
Amazing article. I am so impressed.
Reply to comment


www on Tuesday, July 04, 2017 2:36 PM
Thanks for your valuable information. Great site!
Reply to comment


www on Tuesday, July 04, 2017 2:40 PM
You've got fantastic information listed here. Thanks a lot!
Reply to comment


www on Friday, July 07, 2017 5:35 AM
Great article!
Reply to comment


www on Friday, July 07, 2017 7:16 AM
Thanks for your valuable information. Great content!
Reply to comment


www on Friday, July 14, 2017 12:07 PM
I'm satisfied that you simply shared this useful information with us.
Reply to comment


www on Saturday, July 15, 2017 12:34 PM
Thanks for your valuable information.
Reply to comment


www on Sunday, July 16, 2017 7:56 AM
I discovered out this much informative, as to what I was unquestionably seeking for. Thanks!
Reply to comment


www on Monday, July 17, 2017 9:55 AM
You're doing a excellent job! This was an awesome blog! Thanks!
Reply to comment


www on Monday, July 17, 2017 3:17 PM
Great site!
Reply to comment


www on Tuesday, July 18, 2017 11:51 AM
I love your blog.. very nice colors & theme!
Reply to comment


www on Thursday, July 20, 2017 11:55 AM
Great job!
Reply to comment


www on Sunday, July 23, 2017 5:34 AM
Great article!
Reply to comment


www on Sunday, July 23, 2017 2:25 PM
Thank you for broadening my knowledge of this subject. No doubt its a great piece of writing as well. Thanks a lot!
Reply to comment


www on Sunday, July 23, 2017 2:51 PM
Great article!
Reply to comment


www on Monday, July 24, 2017 9:05 AM
You're doing a excellent job! This was an awesome blog!
Reply to comment


www on Monday, July 24, 2017 9:12 AM
This was an awesome blog! Thanks!
Reply to comment


www on Monday, July 24, 2017 10:48 AM
I found this post to be very educational and meaningful.
Reply to comment


www on Monday, July 24, 2017 10:49 AM
Great article!
Reply to comment


www on Monday, July 24, 2017 11:55 AM
Thanks for sharing this awesome content!
Reply to comment


www on Tuesday, July 25, 2017 11:37 AM
This is interesting! I enjoyed reading your great post..
Reply to comment


www on Tuesday, July 25, 2017 12:06 PM
You're so gifted in writing. Thanks for sharing with us!
Reply to comment


pills on Thursday, July 27, 2017 11:48 AM
This was an awesome blog! Great site!
Reply to comment


www on Thursday, July 27, 2017 12:17 PM
Thanks for your valuable information.
Reply to comment


www on Wednesday, August 30, 2017 7:41 AM
Great article!
Reply to comment


pill on Thursday, August 31, 2017 4:18 AM
Blog is very good, I like it!
Reply to comment


pill on Thursday, August 31, 2017 5:17 AM
A fantastic Post that I have ever seen. Great job!
Reply to comment


www on Monday, September 11, 2017 5:05 AM
The information you have provided is exceptional.
Reply to comment


www on Monday, September 11, 2017 5:06 AM
I discovered out this much informative, as to what I was unquestionably seeking for. Thanks!
Reply to comment


www on Monday, April 23, 2018 12:55 PM
Great site!
Reply to comment


loemrntdherid1 on Wednesday, May 23, 2018 1:42 AM
It was fantastic to discover this one. This is a nice post.
Reply to comment


http://descargarandroidapks.com/es/descargar-lucky-patcher/ on Sunday, August 12, 2018 7:55 PM
http://descargarandroidapks.com/es/descargar-lucky-patcher/
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment
Website Builder provided by  Vistaprint