Getting married is an exciting and joyous occasion, but it can also have a significant impact on your taxes. It's important to understand how your tax situation may change and to take steps to minimize your tax liability. You will need to decide whether to file your taxes jointly or separately. Before you decide. Here are some tips from our Tax Pros on how to navigate the tax implications of getting married:
Tax brackets: When you get married, your combined income may move you into a higher tax bracket, which means that you may pay a higher percentage of your income in taxes.
Standard deduction: When you file your taxes as a married couple, you will be eligible for a higher standard deduction. In 2022, the standard deduction for married couples filing jointly is $25,900, while for single filers, it's only $12,950.
Credits and deductions: Getting married can make you eligible for certain tax credits and deductions that are not available to single individuals, such as the Child Tax Credit and the Earned Income Tax Credit.
Social Security benefits: If you or your spouse were previously married and are now remarried, you may be eligible for Social Security benefits based on your ex-spouse's earnings. This could impact your tax liability.
Tax withholding: When you get married, you may need to adjust your tax withholding to ensure that the correct amount of tax is being withheld from your paychecks. This can help you avoid owing a large amount of tax when you file your tax return.
Joint and several liabilities: When you file your taxes jointly, you and your spouse are jointly and severally liable for any tax owed. This means that if one spouse doesn't pay their share of the tax, the other spouse could be held responsible for the full amount.
If you got married in 2022 it can have both positive and negative impacts on your taxes. It's important to understand how your tax situation may change and to make any necessary adjustments to your tax withholding and filing status to minimize your tax liability. Our Tax Pros at Puma Accounting have extensive experience working with clients in various tax situations and can provide tailored advice that will help you optimize your tax situation. Contact Puma Accounting this tax season we are making tax filing easier for you!
