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Tax Planning Topic – Marriage Tax Advantages

Posted on July 1st, 2016

It’s wedding season! You have worked hard for so long to make your big day perfect. Your wedding day is worth every penny you spend, but it’s still nice to keep money in your pocket where you can, so let’s talk about the tax advantages you get from the IRS as a wedding gift when you file your tax return next year.

1. In a marriage where one spouse makes substantially less money or does not work at all, the spouse that has higher income will have the same amount of income taxed at a lower tax bracket as a married person than as a single individual.

2. The standard deduction for married couples who file jointly is exactly double the standard deduction for someone filing single. For 2016 this means singles could deduct $6,300.00 while married filing jointly couples could deduct $12,600.00.

3. The same case applies to the lower tax brackets of 10% and 15%. Married couples filing jointly can earn (in combination of both incomes) twice as much as single individuals before moving on to the next bracket. The below chart shows the exact amounts for the year 2016.

2016 IRS Tax Rate Schedule

Tax Rate

Single Filers

Married and Filing Jointly or Qualifying Widow(er)

Married and Filing Separately

Head of Household


$0 – $9,275

$0 – $18,550

$0 – $9,275

$0 – $13,250


$9,276 – $37,650

$18,551 – $75,300

$9,276 – $37,650

$13,251 – $50,400

4. Most people go into marriage with the goal of someday buying the home of their dreams. Many work toward the home of their dreams by starting small and building up equity. If you are single, when you sell your home you can exclude up to $250,000.00 of the amount of gain from your income. When you are married, as long as both spouses have lived in the house for at least two years, the amount of exclusion will increase to $500,000.00.

If you are getting married this year, consult with your accountant about the advantages you will get on your tax return for this year. There are many more benefits in addition to the above mentioned advantages. Some of the include setting up IRA for the non-working spouse, qualifying for higher deductions, and protecting your estate. Planning for your next return is the key to get the most out of it.

To speak with an experienced CPA give us a call and we will plan for this exciting change in your life as well as prepare your tax return to your best interest.

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