Video: Tax Tips for the Newly Married – TurboTax Tax Tips & Videos

overview newly married couples may have access to a variety of tax breaks depending on whether they file jointly or individually, as these tax tips will reveal. Enjoy your marry bliss even more with the help of this video on tax basics. postpone OF CONTENTS



Video transcript:

Hello, I ‘m victoria from TurboTax with some significant data for newlyweds .
Did you just get married this year ? If so, I ‘m sure that taxes are the survive thing on your mind. however, your new status can bring you lots of tax savings—perhaps even enough to pay for your holocene honeymoon .
The first thing you and your spouse must decide on is whether to file as married filing jointly or marry file individually .
In most cases, filing a joint hark back with your spouse will save you the most in taxes.

hera ’ s a general exercise. Suppose you and your spouse file break returns and you have $ 90,000 of taxable income and your spouse has $ 10,000. By filing individually, the tax bracket for each income horizontal surface is applied. $ 90,000 will have a higher tax bracket than $ 10,000 .
You may end up paying more by filing individually because the $ 90,000 in income was taxed at a higher rate .
however, if you file jointly, the compound income of $ 100,000 moves into a lower tax bracket. This is because the IRS views each spouse as earning half the total income which basically keeps more income in lower tax brackets .
Because of the lower tax brackets you and your spouse will enjoy, it may be a good idea to evaluate whether either of you should reduce the sum withheld from your paychecks on your W4s. This will make your tax refund smaller but it will put more money in your paychecks throughout the class .
Turbo Tax has a free W-4 Withholding calculator that can help you estimate.

Another great benefit of filing jointly is the raise limit to charitable contributions that may be deducted in a year. This means if one makes a large charitable contribution but does n’t have income of at least double that come, they can use their spouse ’ sulfur income in determining their deductible amount—meaning they save current taxes rather of having the contribution carried over to the following year .
Remember, with TurboTax, we ‘ll ask you simple questions about your life sentence and avail you fill out all the right tax forms. With TurboTax you can be convinced your taxes are done right, from dim-witted to building complex tax returns, no matter what your situation .
Married couple sitting at computer

reference : https://www.peterswar.net
Category : Finance