Congratulations on getting married! As you two embark on this journey together, I wanted to share some tax deductions that can help you come tax time. One thing that you may not be familiar with is exactly how tax deductions help you.
Tax deductions lower your family’s taxable income and may help you lower your tax burden. Taking the tax deductions that you’re entitled to as newlyweds can help you get your finances in the right place.
First of all, you have to make sure that your names and your social security numbers on your tax return are what’s on record with the Social Security Administration.
If you haven’t already contacted them and submitted a form for your name change, then do so as soon as possible. In that same vein, make sure your employer has the correct information so your W-2s are accurate.
New Changes, New Deductions
With marriage comes changes to your household. Some of the tax deductions may apply to you, while others may not. The important thing is to make sure you both sit down and discuss how you’ll be handling your taxes.
Standard Versus Itemized Deductions
Before you were married you may have taken the lower standard deduction, but now would be a great time to check and see if you have enough eligible expenses to itemize.
In general, you to want to itemize your deductions when your total eligible deductions exceed your standard deduction. Currently the standard deduction for those married filing jointly is $11,900.
When we used TurboTax to file our tax return, it automatically checked our tax deductions to see which would give the bigger deduction.
Married with Children
If your family will be growing with one or more children becoming legally a part of your household, then you may qualify for some additional exemptions for dependents.
You can claim an exemption worth $3,900 per child when you file your taxes. Please keep in mind that you must provide a social security number for your dependents when you claim them on your tax return.
Review your Finances, Together
Finally having two heads reviewing your finances is better then one, so look over your expenses to see if there are any tax deductions or breaks you have overlooked in the past or you’ll qualify for this year.
- Personal Property Taxes: In North Carolina we pay property taxes for our vehicles in the summer and our house at the end of the year. While it’s chunk of money out of our family budget, the good news is that state and local property taxes are deductible. Keep your receipts so you know how much to deduct.
- Charitable contributions: Have you thought of sharing your special day by donating? For many people, their wedding wardrobe, decorations, and other items are only used for one day and then packed away, sometimes forgotten in the attic. Why not see if you can part with a few of these dear items afterward and support worthy causes close to your heart?
Thoughts on Tax Deductions
I’d love to hear your thoughts about saving on taxes with deductions. By using all of the tax deductions that your family is eligible for, you can minimize your obligations for taxes and perhaps increase your tax refund.