When you get married, it can be huge life change. For the most part, it is hopefully filled with beautiful changes as you decide to walk side by side with your new companion for life. One thing that will see some significant change is your taxes. You will see several different things change on your taxes when you take this giant step in your personal life. Mark Dicus & Company is here to talk about how your taxes will change once you have gotten married.
Change Filing Status from Single to Married
One of the first things that will likely change for you is your filing status. You will more than likely see that there are more benefits to filing your taxes jointly rather than separately. Some people choose to file married but separately while many will choose married filed jointly as their new status because of the tax breaks they see. Everyone has such unique circumstances that the only person that can tell you which one is best is your accountant and your spouse. You will have to make this decision together.
Tax Bracket Benefits
You will see that you can make much more money as a married filing jointly couple and stay in the same tax bracket. This is great news since it means that you will make more money and you will owe less in taxes on that money. You will see a significant change from when you were filing as a single person prior to your marriage.
Another area that you might see a difference once you are married is in the credits and deductions that you are eligible for. There are two different kinds of deductions standard and itemized. Everyone gets a standard deduction when they are single or married. This is a much smaller amount for those that aren’t filing jointly. However, you might find that you can do an itemized deduction rather than standard if you have enough expenses to deduct from your taxes. You need these expenses to be over a certain amount of money and can help you stay in a lower tax bracket if you are on the cusp of getting bumped up.
Available Tax Credits
Your spending habits might start to change after you get married. You might find that you are eligible for different tax credits. This is especially true if there are any children that are joining in the union. There are also some tax credits that might be available to you if you are in school. Make sure you are talking to your accountant about any tax credits that you could be taking advantage of.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you have just gotten married and would like to see what that looks like for your taxes and filing status, you can turn to Mark Dicus & Company for answers. We will help you navigate what this big step means for your taxes. Call us today!