Marriage could have a serious impact on your tax situation.
It could save you and your partner both in the long run.
Stimulus: 600,000 Americans to see stimulus payment worth up to $600
Marriage and capital gains tax liability
Marriage affects how you and your partner file taxes. Factors like income level calculation, which taxes you are liable for, and how much you’ll have to pay are all impacted. Additional details can be found here.
Married couples can transfer assets between them without any tax implications. This makes it really easy to shift who has the tax liability asset. This is most helpful when trying to figure out the amount of capital gains tax you’ll have to pay.
For example, shifting the assets to the person who is taxed less could save you money.
Easier filing
Filing a joint return can simplify filing taxes for both of you.
No estate tax for inheritance
Marriage can also mean avoiding the state tax. The tax is typically levied don the inheritance passed down after death. Usually, money that has been passed down to someone who has died will be subject to this tax. However, married couples can leave unlimited money to their spouse without the tax. The tax will only be levied once both people in the couple have died.
IRA contributions
If you file single and are out of work, you typically can’t contribute to an IRA . However, if you are married and your partner is working, you can still contribute to a joint IRA.
Eligible married couples can either make contributions into two separate IRAs or one joint account.
Stimulus: Applying for the $850 stimulus checks in June
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].