What are the benefits of filing taxes together?

posted 3 years ago in Money
Post # 3
Member
810 posts
Busy bee
  • Wedding: October 2013

I am a newlywed like you (yay!) so this will be our first year filing together. We make about the same amount but I waited tables throughout the year as a side job, and I usually owe taxes from that. I think our refund should be higher than if we were single, but due to my server wages it will eat out of his refund. We have decided to put the full refund in the new car saving account. In the future it will go into a joint account for joint needs. we may decide to each take a small pay out ($100 a piece) for fun money, but save the larger portion.

 

Post # 6
Member
1068 posts
Bumble bee
  • Wedding: July 2014

@Daizy914:  “Married filing separately” is a hugely punitive tax status.  You are not eligible for most programs and credits if you choose to file with that status, and if you are, the cutoffs are lower.  Even if you might have done better when you were single, filing as single is no longer an option available to you if you are married.

If you’re curious about the differences between two single filers vs. filing as married, here’s a nifty calculator!

Post # 8
Member
9137 posts
Buzzing Beekeeper
  • Wedding: November 2013 - St. Augustine Beach, FL

My spouse makes signifcantly less than I do so getting married should mean a higher return for us since it throws us into a lower tax bracket than I was in as a single person.

Post # 9
Member
6073 posts
Bee Keeper
  • Wedding: August 2012

 @Daizy914:  You can run it both ways in Turbo Tax – filing jointly and separately – without paying (just don’t submit until you’ve tried it both ways).  If you file separate then neither of you can itemize.

We got a refund last year.  We do not split it, it goes right into our checking to be used for life.

Not at states have the marriage tax either.  But just because you may be in a state that has the penalty, doesn’t automatically mean go separate either.

 

 

 

 

Post # 10
Member
2891 posts
Sugar bee
  • Wedding: May 2015

@Daizy914:  Depends on your income. FI and I will actually have to pay a marriage penalty, based on our income + tax brackets. That’s part of the reason why we don’t mind a long engagement!

Post # 11
Member
499 posts
Helper bee
  • Wedding: April 2015

@bitsybee:  Really? I always thought filling as married instead of single will have a bigger tax break…

I’ve never heard of a marriage penalty before, how does this work?

Post # 12
Member
1599 posts
Bumble bee
  • Wedding: October 2013

@bitsybee:  We’re having a similar situation- I’m going to end up paying WAY more in taxes and my husband will be paying about the same. Our refund this year (married) will be less than our refunds combined last year (unmarried.) He bumps me into a freaking insane tax bracket so my taxes are all jacked up.  I’ve always done my own taxes but I will say, it’s nice to have someone do them for me this year!

Post # 13
Member
5697 posts
Bee Keeper
  • Wedding: August 2012

Well… we have joint accounts so we don’t split anything, it just gets spent together (or primarily by me, let’s be honest here lol), or saved together.

You should still be able to file interest paid on student loans so that should help you out.

Post # 14
Member
751 posts
Busy bee
  • Wedding: September 2013

@jdhall89:  Can you choose for the first year of marriage?  I was single for none months, married for three.

Post # 16
Member
7090 posts
Busy Beekeeper
  • Wedding: August 2012

We got about $1000 less than usual between the two of us. I’m pretty sure joining our incomes definitely jumps us up a tax bracket. Boohiss.

We have a joint account so all the money goes to the same place.

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