Does the word “taxes” make you cringe? Well, getting married can actually save you money on your taxes! Tying the knot comes with major tax bonuses that leave more cash in your wallet. This article outlines the biggest tax benefits of marriage couples get to enjoy.
bining Finances Slices Your Tax Bill
The government tax system gives married couples special perks. Filing taxes together unlocks things like bigger income ranges for lower tax percentages, increased standard deductions, and more credit opportunities. Read on to learn how saying “I do” could mean owing less.
Wider Tax Brackets
The government taxes your income at higher percentages as you earn more. But married couples get wider income ranges that are taxed at lower rates. You can make more money before your earnings get taxed at the higher bracket rates.
According to 2022 data from NerdWallet, a personal finance site, joint filing saves U.S. households an average of $1,856 per year with these expanded brackets.
Bigger Standard Deduction
This is a set amount you can subtract from your income before calculating how much tax you owe. For 2022, married couples get a standard deduction of $27,700—over double what single taxpayers get ($12,950).
More Tax Credit Opportunities
Being married opens up credits that boost your tax refund. These include the Earned Income Tax Credit (EITC) and the Child Tax Credit. They put extra money back into the pockets of lower and middle-income families.
IRS data shows over 25 million taxpayers benefit from the EITC, with an average payment over $2,400.
Submitting taxes jointly allows spouses to smartly apply their combined incomes, assets, dependents, and exemptions in the most beneficial way. For most couples, filing together saves them money versus filing separately.
Per the Tax Policy Center, the average joint return amount owed is $7,147 versus $9,528 if spouses filed separately—a savings of over $2,300!
Perks For Parents
The tax bonuses multiply for married couples with children. They qualify for bigger credits, can claim more dependents, and gain tax exemptions for childcare costs. Kids provide extra tax breaks.
Census data shows the average Child Tax Credit gives qualifying parents over $4,775. This extra money helps offset the costs of raising kids.
Tax Benefits of Marriage are No Joke!
While marriage is about more than money, the tax perks are sizable. Through tax credits, deductions, smart filing, and widened income brackets, married couples keep more of their paychecks. Before dismissing marriage as old-fashioned, understand the financial benefits. Saying “I do” could save you big money at tax time!