The tax code gets changed always. The deductions and credits always alter. Few times, in particular, it gets hard for the married people for tracking down the tax issues. That’s why, here are some tips for the married people, who are ready to file their tax returns so that they must know how tax changes after marriage.
Marriage penalty and filing tax
The penalty of marriages usually comes during the time of tax. The marriage penalty is a way by which IRS uses to adjust the gross income of the couple up to $110,000 or even more. There comes the tax bracket of 15% with it and causes a phase-out of the personal exclusions and child credits. This marriage penalty can also reduce the itemized deductions. But, there are other ways of reducing the tax liability for married couples. As they get the choice of filing together or separately, they will have to find which option is better for the tax liability.
For the newly married couple, for filing the tax returns, it is needed to start the process before the year ends. If the last name gets changed after getting married, always remember that you require to get the new card for social security card having the last name changed.
As you get married, also remember to alter the withholding status. For the single rate, you get overpaid for the tax obligations, and you may not want to do so. For the married people, they must take some time and discuss their whole situation about the tax with their CPA.
Never Forget these Things
As you get married, you sometimes also get moved. Either one of the two partners move, or both of them move to a new place. A new place means you get a new address. It gets important to update the employer, IRS and the post office about your new address. Be sure that each of the tax-related papers has your new address on them.
One thing more which usually happens just after the marriage is that people change their last name. Either one of the spouses changes his or her last name or may add any symbol in his or her name. it is significant that you inform your post office, IRS and employer about this alteration, so that there remains no confusion about your papers and your tax filing process becomes easy.
Filing the tax Jointly
After you have got married, you as a couple usually file the taxes jointly. In this way, you also get the joint tax return. All of the deductions and limitations get doubled for two people who may not trouble you if you had filed as a single person. But, there exist few differences in law about tax codes that are linked with the marriage penalties.
In this situation, when the joint tax filing makes you pay a high amount of the taxes as compared to the case when you have to pau lesser if you file for the single tax return, the taxable income will remain same.
It has been mainly diminished for the low-income tax during 2010, however, can be applied once the tax filer reaches to the income of around $137,300 or higher. For instance, assume a married couple with earnings of $120,000 by one spouse while earning of $100,000 for another spouse, then tax being a married couple will be $44,607.50. For single filing, total tax will be $43,782.50, why is $825 lesser than the joint filing. This "penalty" increases depending on the amount of your income earned.
If in Doubt, get Advice!
After you got married, you may not be in worry of the included taxes. For those who have concerns that they may miss anything or want to get clarification about they must file their tax as the couple because tax changes after marriage, must contact their CPA or find a tax preparer. Depending upon the tax situation, he will guide you in the best of the way for filing. He will talk about the name or address changes you made after marriage and process of filing tax with these changes. He will help you also about the steps and remind you of anything which you may miss.
