Planning for marriage is a momentous affair that many dream about, but there is one item that’s often neglected during the preparation process: taxes. If you’re planning for that special moment and haven’t thought about the financial impact beyond the wedding, you could be stuck with an unexpected marriage tax penalty when you file your tax return.
When you tie the knot, you step into a new territory of filing statuses: married filing jointly or married filing separately. In most situations, it doesn’t make sense to file married filing separately because you give up the privilege of taking full advantage of desired credits and deductions, including the following:
If your spouse has a huge tax bill that could negatively impact your finances, it may work in your favor to file separately. But most couples automatically opt to file their taxes as a married couple to maximize the number of benefits they qualify for.