If you are married, here are some tax tips which you will find useful:
Did you know that your anniversary date matters?
According to the rule of U.S. Supreme Court the tax date which the married couple should remember is Dec 31. The Tax Department considers you married for the whole year even if you get married at the night of 31 Dec. The same is true for ending marriages. Even if you get a divorce on the last day of the year, you will e considered divorced for the whole year.
Filing a joint return is better than filing return separately
Married couples have two choices; submitting tax returns by filing jointly or by filing separately. In most cases filing jointly is preferable. When a couple files jointly it generally offers a lower tax rate on more money. There also are some tax breaks that aren’t allowed to married couples who file separate returns.
There are separate advantages and disadvantages of both the methods. Again you cannot consider anything fixed and final in tax returns. There might be cases when you get greater advantage by filing separately.
It is advised that you take help from a professional at Tax Help MD, the professional will gauge all the options and give you the best solution.
Beware of the tax penalty
This is where a couple finds that they are paying more in taxes as joint filers they would have paid if they had filed as single taxpayers, this happens when their combined income comes to a greater tax bracket. It generally happens when both spouses make roughly the same amount of money. And filing separately, with its special tax rate brackets doesn’t necessarily alleviate this disparity. On the other hand, some married couple discovers that their joint filing status gives them a tax bonus.
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