So my fiance and I are planning on getting married on January 2nd of 2010. Several people have told us it would be advantageous to get married right before year-end so we can enjoy the tax benefits of being married for 2009.

H&R Block said "You will generally pay more combined tax on separate returns than you would on a joint return because you are not able to claim as many credits and deductions."

Any idea what credits and deductions they're talking about or what kind of taxes a couple who both have pretty salaries would save by filing jointly?

Thanks!

5/27/2009 9:18:02 PM

When you file jointly, your taxes as a couple are usually lower than the combined taxes the two of you would pay filing separately. The standard deductions are higher for a couple filing jointly than singly. If there is a gap in your salaries, filing jointly benefits you because it will push the person with the higher income into a lower tax bracket if they file jointly.

This is a good article that may help you.

http://www.marketwatch.com/story/why-your-marriage-might-be-more-taxing-than-you-think?pagenumber=1

OH! and Phil, have you ever thought about just signing the papers and everything before the end of the year, but holding the ceremony on the 2nd. That way you can have both.

[Edited on May 27, 2009 at 9:32 PM. Reason : OH!]

5/27/2009 9:31:08 PM

i'd crunch the numbers and check - it's setup so that the majority of people benefit tax-wise from being married - just make sure you are in the majority

5/27/2009 9:34:01 PM

^^Yes, ssshhhhhh

5/27/2009 9:37:18 PM

Hahaha. Sorry.

5/27/2009 9:38:43 PM

Thanks both! I need to see if my new homebuyers' tax credit would be in jeopardy if we got married this year (since she already has a house)...

[Edited on May 27, 2009 at 9:43 PM. Reason : .]

5/27/2009 9:43:30 PM

Quote :

"S4. If husband and wife wanted to sell the home that the wife owned when they got married, and the husband had not owned a home within the past three years, could he qualify as a first-time homebuyer for the credit even though the wife would not qualify? A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the wife had ownership interest in a principal residence within the prior three years, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. The husband may not take the credit even if he filed on a separate return."

http://www.irs.gov/newsroom/article/0,,id=206294,00.html

5/28/2009 1:21:44 PM

i can guarantee that the benefit of filing jointly will not equal the benefit of the first time home buyer's credit, unless she doesn't work or the income difference is VERY drastic. i would run it by an accountant.

i wouldn't get married until the second if i were you

[Edited on May 28, 2009 at 5:43 PM. Reason : .]

5/28/2009 5:42:28 PM

Quote :

"If there is a gap in your salaries, filing jointly benefits you because it will push the person with the higher income into a lower tax bracket if they file jointly."

Not always the case. Sometimes it works the other way around and the lower income person gets moved up into the higher bracket. That is why it doesn't make sense for the wife to work if the husband makes a lot of money...

5/28/2009 10:33:08 PM

Make sure you understand the difference between married filing separate and single. They are not the same filing status and married filing separate is not an advantageous filing status.

If you do marry on or before Dec 31st you are considered to be married all year and have two options with filing status, married filing joint or married filing separate. If you are married on or before Dec 31st you cannot file single. If anyone tells you differently you can ignore any other "tax advice" they are giving.

The best filing status is generally married filing joint or qualifying widower w/ dependent child.

If you are going to be eligible for the first time home buyer credit the house would need to be in your name and you could amend your 2008 return to claim the credit. You could then marry anytime this year and the first time home buyer credit will not be affected.

5/29/2009 12:41:18 AM

hmmm, at least the current first time home buyer credit thing does not have to be repaid anymore...

5/29/2009 1:15:52 PM

^^That's what I'm planning on doing. Who wants to wait until next year to pick up a check for $8000?

5/31/2009 1:38:54 PM