When you say, “I do” a lot of things change – including your tax situation. Back in the day, it used to be that couples were penalized when they both made high incomes because it pushed them into a higher tax bracket. But now, things are changing so couples can start reaping more benefits and less penalties. According to TurboTax.com, if one spouse has a lower salary that person may be able to pull the couple down into a lower bracket which would reduce overall taxes.
- Married Couples Can Get Greater Charitable Contribution Deductions: Depending on income, there’s a limit to how much money an individual can contribute to charity and use as a deduction. If you have a spouse, that limit increases.
- Marriage Can Protect Estate: If you’re wealthy and married, this may make it easier to protect assets that are left behind.
- Spouse Could Be A Tax Shelter: If you or your spouse owns a business that is losing money, the other person can be used as a tax write-off.
- Couples Can Benefit Shop: If both spouses are working and both have great benefit packages at work, they can pick which ever package has the best benefits. The right mixture of benefits can increase a couple’s tax savings.
Keep in mind, when filing a joint return you are responsible for every number that’s in there. You are equally liable for everything.
READ MORE: 7 Tax Advantages Of Getting Married