What Are the Benefits of Marriage on Taxes?
Marriage can bring a variety of changes to your life, including tax changes. When it comes to paying taxes, being married can benefit the wallet. For newlyweds, your wedding must be before the last day of the tax year, December 31, to file taxes as "Married."
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Higher Deductions
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Married couples filing joint tax returns typically owe less in taxes. The amount for the standard deduction is higher for a married couple than a single person, reducing your taxable income.
Earned Income Credit
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A married couple with children can qualify for earned income tax credit. The credit subsidizes the earnings for lower-income families. The qualifying child must meet the age, residency and relationship requirements. The earned income tax credit can result in a bigger refund for qualifying couples.
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Real Estate Tax Breaks
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Married couples also receive tax breaks when they sell real estate. The amount of home-sale profit exempt from taxes doubles from $250,000 to $500,000 as long as the homeowner lived in the house for at least two of the five years before selling the home.
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- Photo Credit the marriage image by Warren Millar from Fotolia.com
