It’s my first time getting married, and I want to know my tax implications. Getting married involves numerous tax obligations; you must determine what tax obligations work for you and your situation. Marriage comes with numerous tax implications that couples should be wary of if they will have a fulfilling marriage.
It is important to have a clear understanding of what the tax implications would be when you eventually get married. Learning about what tax implications may happen due to your marriage can help you prepare beforehand.
When you fully understand what impact tax implications would have on your marriage, it can help you make informed decisions as to how best to go about your financial business in marriage.
In this article, we will cover the different areas of tax implications that can happen to you as an individual getting married for the first time.
When you think of the different exclamations that go with it is my first time getting married, then all of this will start making sense.
Marriage and Tax Implications
The key points to note in this article have much to do with the concept and understanding of the tax bracket, marriage penalty, and marriage bonus. There are some major changes that happen after marriage, and it’s important to know how these changes impact your taxes.
It is important to note that in the case of marriages, when one spouse earns significantly more than the other, if you choose to combine your income into one, the spouse earning the lower income can bring in some “marriage-bases tax benefits” to your tax return.
Therefore, getting married can definitely bring about some great aspects of the marriage benefits that are usually not paid much attention to.
In the same light, if you were to sell your home after marriage, you can also take advantage of the tax benefits that come with you selling your home. Provided one of you owned the home for the last 2 years, and both of you lived in the home for at least two years in the last five years.
Checking Your Filling Status
Though you are now married and considered one in the eye of the law, you can still opt for other filing options, depending on your situation. When you take that first step toward getting married, so many things change, including how you choose to file your taxes.
It is important to ensure that your filing status is one that works for your situation. Depending largely on your unique situation it is important to explore all the available avenues and areas before you decide on what filing status to settle for.
Things like you withholding status, your tax filling history and much more can contribute to what path that ma work for you.
The moment you know for sure what works for you, then it becomes a lot easier to take the necessary steps to ensuring that you file the right way so you can enjoy all the benefits that come with getting married.