Wedding season is upon us and there is a ton of planning to do. One of the items that are probably pretty far down on the checklist is to prepare for tax season. Uncle Sam has a plan and you need to as well.
So, the main question, will you owe more or less now that you have possibly a double income household?
The IRS has income brackets that are designed to charge a certain amount of tax based off om marital status. Where do you and your new spouse fall into the new bracket?
After consulting with a Liberty Tax® specialist, you would need to schedule some time to review your deductions from you paycheck to more accurately reflect your new expected tax bill. Make sure you get that W-4 filled out as quickly as possible.
The next decision that we will help you with is your filing status? You have a choice to file jointly or separately. This decision is important as it can have a huge impact on how much you pay in total.
Some people may file separately to avoid a tax liability. If you file jointly, both spouses are liable for any taxes, interest, and fines that may arise from a return.
In addition to new benefits that maybe available you could also find other benefits that aren’t available for separate filers, including the adoption credit, educational tax credits, and deductions for student loan interest. In addition, if one spouse itemizes, both have to itemize even if the other spouse would potentially be better off with a standard deduction.
We understand that this can be very confusing, please stop by a Liberty Tax® office today to help you meet your goals.
Enjoy your honeymoon!