When you make the global shift from being single to being married, there are several changes you will likely have to make. Your life is going to be completely different now that you have to think about your spouse as well as yourself. One of the things that will likely change is the way you do your taxes. Some newlyweds may be wondering if it is more beneficial to file their taxes jointly or continue to file separately. Mark Dicus & Company is here to talk about why you may want to consider jointly filing your taxes after you have gotten married.
What are the Benefits of Filing Jointly as a Married Couple?
When it comes to your taxes as a married couple, there are several benefits to filing jointly. By in large, when you file jointly, you are going to get more tax breaks and more money in your pocket. The standard deduction will be $25,001 as opposed to $12,500 when you file separately. There are other popular tax credits that you can’t take advantage of popular tax breaks either. Some of those breaks include the earned income credit, Lifetime Learning tax credit, American Opportunity Tax Credit, or the Child and Dependent Care Tax Credit.
What are the Disadvantages to Married Filing Separately?
If you have decided to file Married but separately, there aren’t many tax breaks that you can take advantage of. For instance, you aren’t able to claim any of the interest you spent on your student loan interest. You are also held to a smaller IRA contribution deduction as well. It doesn’t make a lot of sense to file separately because you will be disqualified from almost all tax credits.
What are the Reasons to File Married Filing Separately?
There are certain circumstances where it may make sense to continue filing separately even after you have gotten married. Here are some of the most common problems that can benefit from this.
– If your income together will be too high to qualify for the medical expense deduction. Some households will be able to qualify for this deduction if they are filing separately to make it worth it.
– Some people will have a spouse that owes a significant amount of money at tax season. Some couples will decide to file separately so that the return of their spouse remains intact.
– Anytime your spouse owes money for unpaid child support, filing separately will make it so the IRS will leave your tax return alone rather than using it to pay off your spouse’s debt.
Tax Preparation, Filing & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you are confused about your taxes this year, you can turn to the pros at Mark Dicus & Company to help you sort it all out. We will make sure you are taking full advantage of all the deductions and tax breaks that are available to you. Call us today!