How to get along with the IRS to get married

When you get married, you have the option to file your tax return in the married filing jointly category. However, there could be a marriage penalty in that you may end up paying higher taxes due to higher tax brackets. This is especially possible when the spouses’ incomes are unequal. The combination of those incomes can lead to higher tax brackets and consequently end up paying higher taxes.

However, there are some benefits that may be available to married people from the IRS. Let’s list them here:

1. If you face higher tax brackets due to marriage, you can continue to file as a single person. However, in reality, the ‘married filing separately’ status rarely helps people. This is due to certain restrictions imposed by the IRS. If all spouses prefer to file separately, one cannot itemize while the other takes the standard deduction. Both have to claim only one option.
2. Fringe Benefits: Marriage may open up with some new opportunities to save. For example, if you are covered by the health plan offered to her wife, you do not need to continue your health insurance premiums. Maybe you can change for another benefit.
3. Withholding Benefits – You can refine your withholding after marriage. It is necessary to properly analyze the retention provisions. You can also discuss supplemental benefits so you can decide which to continue for yourself and which to leave to your spouse. This can substantially lower your withholding, earning you more money for your new life.
4. Benefits from the sale of a home: When you change your filing status upon marriage, you can claim more tax-free capital gains from the sale of your home. In fact, the amount doubles from $250,000 to $500,000. Remember, there are certain conditions: You must own and live in the home for at least two of the last five years. If both the husband and wife owned homes for more than two years before the marriage and sold those homes in the year of the marriage, the exclusion amount may be $500,000.

Remember, if you change your name after marriage, you must report the change to the Social Security Administration by filing Form SS-5. If the name entered on your tax return does not match the name with social security and the administration, it will delay several things, including your refund. If it’s close to the filing deadline and you don’t have time to change the details with the social security administration, you should file a joint return with your old name and then the corrected one with the social security administration for the next return. year.