The wedding season has officially commenced and it’s widely acknowledged that most couples choose to tie the knot during summer. However, do you realize marrying can significantly alter your tax circumstances?
This change can either be favorable or less so, and like marriage itself, it’s subject to a variety of factors. Some of them include the difference in your earnings, if either of you has children, if you have income source apart from your job, the extent of your combined income, and whether deductions are itemized.
According to the Tax Foundation, married couples might be subjected to a “marriage penalty” that could scale up to 12% of their income. Conversely, they might be treated to a “marriage bonus,” which could potentially save up to 20% of their income on taxes.
For an in-depth understanding of how impending nuptials can impact your tax situation, refer to CNN Money. Image is credited to Pixabay, courtesy of SmartAsset.com.
