True love and compatibility are just a few of the benefits of getting married, but did you know that getting married can also offer tax benefits?
While it’s not recommended to get married just for the tax benefits, when you find that special person and say “I do,” tax season will be a wedding gift in itself!
So, what are the tax benefits of getting married?
Keep reading to learn 5 of the greatest benefits!
- A Jobless Spouse Can Still Have an IRA
If one parent is a stay at home parent, that person typically isn’t bringing in enough money individually to contribute to an IRA.
Marriage is beneficial here because the income from the working spouse becomes joint income. Creating two separate IRA accounts may give tax benefits to the couple as well.
The spouse bringing in money will need to keep their paycheck stubs come tax season, so check out this check stub creator if you don’t have yours anymore!
- Couples Can “Benefit-Shop”
If both people in a marriage have benefits from their job, they can pick and choose which benefits they want to use.
There are usually certain benefits from each plan that will allow the couple to save money. For example, if the couple has dependents, they can take advantage of the benefit package FSA account, which lowers the taxable income.
- One Spouse May Be a Tax Shelter
It’s not recommended to find a spouse who has a failing business, however, one person’s negative numbers can increase the tax benefits of the couple as a whole.
The person who owns the failing business can’t necessarily take advantage of certain deductions, especially those dealing with the home. The spouse who is earning money may be able to take the unused deductions and claim their partner’s losses as a write-off on a joint return.
- Filing Can be Less Time-Consuming and Expensive
If you have to file as a married couple, you’ll save time by only filing once instead of for each person.
The paperwork will take less time to prepare and you will have to pay less money to prepare it. This is especially helpful if you seek professional help for filing taxes.
- Your Tax Bracket Could be Lower as a Married Couple
If each spouse makes significantly different incomes, you can use this to your benefit come tax season.
When you file as a married couple, you can use the lower-income to bring the higher income into the low tax bracket. While this is helpful for different incomes, if a couple earns a similar amount then they may be subject to a tax penalty.
What Are the Tax Benefits of Getting Married?
Marriage is a beautiful thing, and marriage during tax season is no exception.
Now that you know the tax benefits of getting married, check out our Financial Security 101 section to learn more about finances as a married couple!