Post # 17
If one person works or their is a big disparity in income, marriage status is a big help.
If you have similar higher incomes (I can’t speak for the top brackets, just upper middle class ones), you can both move into a higher tax bracket. My Fiance and are are sitting right at the sweet spot for this.
Post # 18
My best friend’s inlaws did this. Her Father-In-Law said to her Mother-In-Law ‘I know we haven’t talked about marriage, but I think we should get married by the end of this month for tax purposes.” MIL said ‘Yeah, okay, that makes sense.’ And that was it! The proposal and the planning all in one moment…and they’ve been married for over 30 years!
Post # 19
We totally did! December 31 last year…whew, just made it! We got engaged too late to get married before football season, but wanted the tax break, so after football season/before the new year it was for us!
Post # 20
K I’m confused 🙂
1) Is there some benefit to getting married in 09 vs. 10? I mean wouldn’t you get the same break next year? Or its just an extra year I guess?
2) How would you ever be penalized for being married? This scares me bc I’m 1099 and do my own withholding… want to make sure I’m holding enough out!
Post # 21
No Corgit there isn’t any benefit being married in 2009 vs 2010. But if you get married on the last day, you are considered married for all of 2009 which puts you in the married tax rates instead. You aren’t penalized per say, just that sometimes the tax rates help you and sometimes they hurt you. More likely, you will owe less when you are married because you will have both your husband’s income and yours combined in slightly better tax brackets. If you want help figuring out your withholdings for the next few years, PM me and I can help you!
Post # 22
@ Corgi – I’m no accountant, but if you get married before January 1st of ’10, you can file your taxes together as a married couple, which for many people (like us) means a bigger refund. If you get married on the 1st or after in ’10, you have to wait until next year to file together.
On the other hand, when some people get married, their 2 incomes throw them into a higher tax bracket, which means they will pay more taxes, and which also means many will actually have to write a check to pay their taxes when they file.
So bascially if you make a lot, and your spouse makes a lot, you will likely be penalized when you file together. In my situation, my husband makes a lot, and I make a little, so we didn’t jump tax brackets.
Post # 23
I’m getting married in 11 days (the 29th), but we didn’t choose the date because of tax reasons…
Post # 24
Yeah, I think being married is going to hit us in terms of tax return, not help us. I’m actually looking into filing as married filing separately, in case that helps in terms of my student loans.
Post # 25
my friends did a small ceremony this year for tax purposes but because when they calculated how much a difference it would be to be married this year instead of next year it was like by 8k. so it was definitely a great benefit to them. but they are still having their ceremony next year. it also doesnt hurt that they bought themselves a house this year so it is a huge saving.
Post # 26
lol – that’s not why we got married in December, but it sure will help!
Post # 27
I just bought my house this year and need to file by myself for that purpose. I guess I am in the opposite position that I have to wait till next year to get married. I need that $8k refund!