What are the tax implications of marriage?
The filing process may be simplified, because you can file your taxes jointly. But you may find your overall tax bill higher. Or lower. Once married, however, you can’t just file separately to try and avoid the “marriage penalty” – in fact, if you file as married but filing separately, it can actually raise your taxes. In 2003, legislation was passed that was intended to eliminate the marriage penalty, but it didn’t achieve that goal in the higher tax brackets.
If you file jointly, both spouses are on the hook for any tax obligations, with limited exceptions.
To talk about ways to minimize your taxes, feel free to call our office for an appointment.