Post # 1
Married bees I need some insight. I’m horrible with the tax situation and being newly married I don’t know what to expect. I used to file 0 allowances when I worked part time so I could have more at the end of the year but when I got my job that I have now I file as 1 allowance. Will filing with my husband effect me negatively if they dont take enough out in taxes? I dont make a fortune and I make more than him. Also, we both have student loans which I know they look at when you renew your loans. Luckily we both renewed literally the month before we got married so we were able to put “single” and not have them combine our incomes. Can you bees just give me whatever advice you have with the taxes and any experience with student loans? TIA
Post # 2
- Wedding: February 2017 - historical mansion
mrsdrake : As far as I know, in order to deduct the interest from your student loans, you have to file jointly. I know this because my husband was married before and he filed for divorce in December of one year and it didn’t go through until four months later. Because he has student loans, he still had to file with his ex (and it was a pain…) so he could deduct that interest. Good luck!
Post # 3
mrsdrake : there isn’t anywhere near enough information here to say what your tax impact will be. Some couples do better post-marriage while others have a marriage penalty – it all depends on your respective incomes and available deductions. Most couples do better filing jointly but you can do the return both ways and then file the one that gives you the lower tax bill. Our first year married we got a massive refund because we forgot to change our withholdings from single to married. The next two years we have owed. This year we adjusted our withholdings again and we are adding a kid to the mix so I hope we break even lol
Post # 4
LilliV : thanks. I know I didnt give too much financial info Im just looking in the general idea boat when you file jointly if there are any huge pros or cons that changed from when you were single.
Post # 5
My husband is a tax CPA. Filing jointly is almost always less costly in taxes than filing separately. On the other hand, some people benefit tax-wise from marriage, and some people pay higher taxes (myself and my husband). The important distinction here is that “married filing separately” is NOT treated the same as “single” as far as the IRS is concerned.
Generally, lower income (especially people who receive the Earned Income Tax Credit) and higher income people do NOT benefit tax-wise from marriage. It costs my husband and I a LOT of money in taxes to be married, actually.
Post # 6
This article may come in handy:
(For some reason just shows up like a graph but click on it, hold until you get the menu, and then click open)
Post # 7
mrsdrake : from a CPA, it’s almost NEVER advantagous to file married filing separately. The ONLY time I’ve ever seen it work is if one spouse owes the IRS back taxes from when they were single or if one spouse has outragious medical expenses compared to the other.
There is a calculator on the IRS website to see if you need to change your withholding based on you and your spouses income that I would recommend.
Post # 8
If you’re on an income based repayment plan for your student loans, it may be more advantageous for you to file separately. If you file separately, you only have to include your income on your annual recertification, if you file jointly, you must include both. You become ineligible for certain deductions if you file separately though, depending on your income, thus may or may not make a huge difference.
Post # 9
mrsdrake : You can go on the H&R Block or TurboTax websites and enter in both situations to see which is better for you. The have free tax calculators which have always been accurate for me.
Post # 10
It worked in our favor to file jointly but it’s one of those “it really depends on the couple” type thing. I think filing taxes is generally very easy so I ran the numbers by going through individually and then again by doing it jointly. We had a better tax break by a few hundred by filing together.
Post # 11
DH and I file our taxes separately because of student loans (income based repayment plan).
I would suggest sitting down with an actual tax professional and have them tell you which way to file is more advantageous.
Just FYI, if you file separately, you are ineligible for many tax deductions, including the student loan interest deduction.