Tax Breaks for Newly Married Couples

Marriage has a major impact on your finances.

The choice to get married is one of the biggest decisions of your life. After the wedding you will make many important changes in your life and finances. The way you file your taxes, for example, will change dramatically, from your filing status to the deductions you can claim.

Standard Deduction

The first tax change you must consider after getting married is your filing status. Individuals who were married on or before December 31st of the tax year must file Married Filing Joint or Married Filing Separate on their tax returns. Married Filing Joint is the most beneficial filing status. If you filed as Single or Head of Household in the past you will notice that the standard deduction is higher when you file a joint return with your spouse. At the time of publication the standard deduction for taxpayers filing a joint return is $11,400, which is double the standard deduction for married taxpayers filing separately.

Property Taxes

Getting married means it is time to move out of mom's basement and ditch the roommates. For many newly married couples this means buying their first house. Buying a home brings with it great responsibility and even more taxes to pay. If you itemize your deductions you can claim home mortgage points that you paid, but you're not out of luck if you don't itemize. You can still write off property taxes as an additional standard deduction. Married taxpayers can claim up to $1,000 for this tax break.

Child Tax Credit

Often the next big step after getting married is having a baby. Welcoming a new member to your family is a rewarding experience that comes with many benefits, including new tax credits. The child tax credit is a non-refundable credit that allows taxpayers with a qualifying child to deduct up to $1,000 from their taxable income. If you are unable to claim the full child tax credit because you do not have enough taxable income, you may also be able to claim the additional child tax credit.

Itemized Deductions

You may not have had enough deductions to itemize on your own. Now that you are married and are able to combine your deductions with your spouse, you might find itemizing more beneficial than the standard deduction. Some common itemized deductions are medical and dental expenses; charitable contributions; casualty, disaster and theft losses; home mortgage points; and certain education expenses.

References

• CBS Money Watch: Overlooked Tax Deductions
• IRS: Itemized Deductions