This is to inform you of all the ways that your taxes will be affected when you get married. Thinking about your financial planning future as a couple is vital to making your marriage work long term.
One of the very first things that will change when you get married is your filing status. When a person gets married they have to file either married filing separately or jointly. If you were not married for the entire year, it doesnt matter because you are no longer allowed to file as single because you arent. In most cases it is more beneficial to file as married filing jointly because this will be more beneficial due to the tax deductions that you will now qualify for.
Now that you are married your tax bracket will change. There is a tax bracket for every tax filing status and with you being a newlywed you may find that you are now in a different tax bracket than you were when you filed separately.
Married couples are allowed to file two exemptions personally which is one for each of you. If you ever noticed, when you filed alone, there was only one exemption that you were entitled too but being married you now get two exemptions on one return. The highest deduction is given to married couples that are filing jointly. Here is what it may look like, as a single person your deduction will be $6200 but as a married couple filing jointly it is now $12,400 and if you have a child, this is more of an exemption that you qualify for and this exemption is usually about $3,950 a child.
If you are working then you should change your W2 to include that you are now married which will change the amount of taxes that you have to pay.
When a couple gets married their income usually goes up which allows for them to be able to purchase more things like a home or cars. When you own a home you can deduct the amount of the interest that you pay on your mortgage when you file your taxes.
You both need to determine if it would be more beneficial to either claim the itemized deductions or standard deductions. You might discover that if you itemize your deductions that you end up deducting a higher amount which may cause your return to be higher.
Once you are married you are allowed to give as many monetary and property gifts that you want to one another and they are free from gift taxes.
Make sure that before you file your taxes that you have changed your name with the Social Security Administration so that your taxes will not be delayed or returned.
If you or your partner has received health insurance from a state or federal marketplace, you need to report that you are married as well as any other changes like income, if you moved to another state or if there is a change in the size of your family. If you have advanced payments that you must pay this will adjust whatever that payment is.