Many things change when you get married. Your tax status will also change. In today’s post, AOG Wealth Management, your professional McLean financial planning company, shares three things to consider when filing taxes the first time as a married couple.
1. Your Two Filing Options
You and your partner have two options on how to file your taxes: either married filing jointly or married filing separately. Filing jointly often results in fewer taxes—but not always. The only setback is that filing jointly means you and your spouse are both responsible for everything, no matter who actually files your taxes or makes the decisions. If you or your partner aren’t comfortable with this, filing separately may be a better option.
2. The Estate Tax
If your spouse passes away before you, anything included in their estate will be left to you. These assets are eligible for a huge tax break called the estate tax marital deduction. In short, everything that’s part of your spouse’s estate passes to you without you having to pay federal taxes. Your trusted estate planning manager can help you understand these tax laws and ensure that you and your spouse are planning responsibly for the future.
3. Kids and Credit
Raising kids is tough, but certain tax benefits can help you. The child tax credit, for example, lets you reduce your federal income tax by $1000 for each qualifying child under 17. Note, though, that if you make a combined income of $110,000 or more, the credit will be phased out.
These are just a few tax planning tips for married couples. Call us today at (866) 993-0203 to learn more about how you can plan your finances together. We offer our services throughout Northern VA and Washington, DC.
The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation. AOG Wealth Management, Inc. does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.
AOG Wealth Management, Inc. does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.