Doing taxes for yourself can already be a daunting task, and it may feel even more complicated after you’re married. There are different rules and regulations to follow when you do anything jointly as a married couple which is why many people will avoid it whenever they get the chance to. But while doing things individually can sound easy at the moment, you might want to reconsider once you learn more about the benefits of filing jointly. Allow the professionals at Maggi Tax to help navigate you through the process of filing taxes jointly as a married couple and when it’s better to file separately.
Why Most Married Couples File Jointly
The main reason why most advisors, and even the IRS, highly recommend that married couples file jointly is for the tax breaks. When couples file jointly, their individual incomes become combined into one large sum. This typically results in a higher tax limit which can work in your favor. To play it safe, it helps to review the tax brackets for the current year.
Aside from the benefits, there are also repercussions to filing separately despite being married. To simplify things, filing separately excludes you from the benefits of filing jointly and can sometimes result in increased tax rates. Ultimately, there’s the risk of having to pay more in taxes than you would if you filed jointly.
Read more > Tips To Working Together To Budget As A Couple
When It’s Advised To File Separately
Filing jointly is undoubtedly a better idea for many couples, but there are a few exceptions and much of it has to do with existing bills and debt. Whether it be medical balances or student loans, having a substantial amount to pay off can affect your taxes by making it more difficult to reach the qualifications for certain deductions. The reverse is also possible, in which having a larger income on your documents may alter the details of your payment plan.
Even when filing your taxes as individuals, there are certain rules to abide by as long as you are married. For instance, the nature of your deductions must be the same. Also, each deduction (when itemizing deductions) can only be claimed by one spouse at a time. This means that unless you are splitting it, a single deduction can’t be fully claimed by both individuals. Speak with a financial advisor to learn more about any more rules that married couples filing separately may need to follow
Married Couples Seek Financial Advice And Tax Services From Maggi Tax!
As a married couple in need of direction in time for the upcoming tax season, the financial advisors at Maggi Tax have your back! Reach out to us today by calling (727) 799-1701 or by filling out our online contact form to schedule your consultation and we’ll find the best plan for you and your partner. We’ve been helping the surrounding area get the most out of their money it’s our guidance and invaluable expertise!