The trio of
love, marriage, and taxes sounds like an unlikely pairing. However, nuptials often have a big impact on
individual income taxes.
Let's start with the question most often
asked, "Do we file together?"
If two are
legally married on December 31, 2011, then generally two options exist for
filing status (this blog will not explore a loophole
for Head of Household)- Married Filing Joint or Married
Filing Separate. The tax code includes
several hindrances for those who are married but wish to file separately. However, these hindrances do not apply to all
couples.
The forgotten question, "Do we need to
adjust our withholdings?"
When couples
marry, tax refunds either disappear or become much larger. So many factors come into play when you
combine income. That double-income
factor alone may take you to a higher tax bracket. But other factors like dependents or the
purchase of a home may alleviate some tax burden. To be certain that you are not surprised next
tax season, visit a tax
professional and discuss how you may consider adjusting
your W-4s.
"Am I liable for my spouse's past debts?"
When you
file and sign a tax return together, both parties are accepting what is being
reported to the IRS as truth. If your
spouse holds debt prior to your marriage with which you are not liable and it
is the type of debt that may have a refund withheld (usually IRS debt, back
child support, delinquent student loans, or delinquency on other federally
secured loans) then consider fling Injured Spouse. Injured Spouse will not protect 100% of the
refund amount, but will protect some to most of the refund depending upon
different factors.
Picking your
wedding decor, china patterns and the like can all be very complicated
decisions! The tax implications of your
marriage can be even more complex.
Hopefully some of these tips make tax time simpler for you this year!
Every effort
has been taken to provide the most accurate and honest analysis of the tax
information provided in this blog. Please use your discretion before making any
decisions based on the information provided. This blog is not intended to be a
substitute for seeking professional tax advice based on your individual needs.