What are the tax benefits of being married

what are the tax benefits of being married


Giving the current tax law, we find less tax benefit (deductions & credits) of being married in most cases. The individual tax benefits may be phased out or eliminated due to the combine income of the two. This is essentially people called "marriage tax". Most of us will not mind our spouse make millions of dollars every year and paying taxes. Alternatively, a single may pickup a spouse who has no income with three kids. In this case, they may enjoy lots of tax benefits. This can result up to $8000 tax saving for them. And the single pays additional household bills. Basically, the net benefit is "NONE" or "NEGATIVE". Under the accounting system, we place children and non-working spouse under "LIABILITY" instead of "ASSETS". Of course the children and spouse are wonderful to have. This cannot be measured with monetary value.

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Start your learning process and prepare a 1040 tax return both ways using the required numbers and the information for this purpose using each filing status MFS for each one and married filing joint to try and see the difference in the numbers at that time.

Then you would be able to stop wondering and get down to living in the real world of life.

Use the search box at the www.irs.gov website for Publication 501 (2010), Exemptions, Standard Deduction, and Filing Information For use in preparing 2010 Returns

And for the definition of your Marital Status

In general, your filing status depends on whether you are considered unmarried or married. For federal tax purposes, a marriage means only a legal union

between a man and a woman as husband and wife.


Married Filing Jointly

You can choose married filing jointly as your filing status if you are married and both you and your spouse agree to file a joint return. On a joint return, you report your combined income and deduct your combined allowable expenses. You can file a joint return even if one of you had no income or deductions.

If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses.

If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). You can choose the method that gives the two of you the lower combined tax.

How to file. If you file as married filing jointly, you can use Form 1040 or Form 1040A. If you have no dependents, are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. Use the Married filing jointly column of the Tax Table, or Section B of the Tax Computation Worksheet, to figure your tax.

Hope that you find the above enclosed information useful. 09/27/2011

Bobbie · 4 years ago

Source: answers.yahoo.com

Category: Credit

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