With marriage come a lot of wonderful things. You have someone to spend your life with. You have someone to raise a family with. You also have someone that will come in handy when it comes to your taxes! Of course this is not a good reason to get married in itself, but if you are going to take the plunge you may as well take advantage of all the perks marriage has to offer!
If you are married, you can use your spouses earned income to help fund your IRA. In order to contribute to an IRA you have to show taxable compensation. But, if you are married an exception can be made if you are filing your year-end taxes as married filing jointly. The spouse with the taxable compensation can make a contribution to your IRA if you do not have any taxable income. As long as one spouse is working then it does not matter who puts the money into the IRA.
While your spouse shelters you from harm, they can also serve as a tax shelter. If there is one spouse who is losing money they can take advantage of certain deductions such as those dealing with your home. This is true when it comes to medical expenses as well. Being married can also shelter your estate. If you have a good deal of money you can leave as much of it as you wish to your spouse without having to deal with estate taxes. This exemption will protect the living spouse until the time that they pass on as well.
The law puts a limit on the amount of charitable contributions one can use as deductions each year. When you are married that limit goes up so if one partner makes one big contribution to their charity of choice but does not have double the amount in income, the excess contribution is deducted the next tax year. Just be sure to save all your filing documents in case there are any discrepancies when you go for the carry over. In addition to these things you also may have a chance at getting back more money from the EIC when you file. So, if you are newly married make sure you tell your tax preparer this so they can get you everything possible!Leave the first comment ▶