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Should We Get Married This Year?

Unemployment Insurance and Employment Discussion

Should We Get Married This Year?

Postby Cony » Wed Sep 20, 2017 9:53 am

My fiance and I are planning on having a cheap wedding next April (2012). She makes about 120-130k a year depending on the bonuses she gets. I was laid off and am currently collecting unemployment while going to school because I am enrolled in a program called 599, where they pay you while going for an approved program. My question is should we just legally get married this year to save more money financially when it comes to taxes. She has 150k in student loans that she pays a lot of interest on, (1,500 a month payments) but can't even claim because of the tax bracket she is in. She has a 401k setup, which helps somewhat. She currently claims 0 on her W-4 and it will still be cutting it close next year when she file taxes. Our combined income will be about 138k to 148k with my unemployment income. I am currently going to school, but I do not get financial aid anyway because I was just laid off. Since we are already getting married next April, why not get married now for the tax reasons and I am currently without health insurance too. We will still have our wedding ceremony and reception with family next year. Thank you for your insight.
Cony
 
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Should We Get Married This Year?

Postby Ricweard » Thu Sep 21, 2017 8:13 am

Using taxable income of $130k + $18k as Single and $148k as Married Filing Jointly, getting married before the end of 2011 will save about $2,000 in federal income taxes.

Contrary to one uninformed response, there are income limits to the student loan deduction and it appears that she will hit that either way.
Ricweard
 
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Should We Get Married This Year?

Postby Celsus » Thu Sep 21, 2017 10:48 pm

yes this the best time to get married
Celsus
 
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Should We Get Married This Year?

Postby Flannery » Fri Sep 22, 2017 7:42 am

it does not appear getting married now will make much difference in your tax situation

as filing single on each of your incomes, you are taxed at that rate(depending on the income)

combining your incomes puts you in a higher bracket and will pay more income tax because of it
Flannery
 
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Should We Get Married This Year?

Postby Oswin » Sat Sep 23, 2017 5:42 am

You and her can play some games with the below estimated tax calculator for this purpose to try and get and estimate what your estimated tax liabilities might be using each different filing status and then you might be able to make you own decision about when you may want to become legally married. http://www.dinkytown.net/java/Tax1040.ht... http://www.dinkytown.net/java/Tax1040201...

Enter your filing status, income, deductions and credits and we will estimate your total taxes for 2011. Based on your projected withholdings for the year, we can also estimate your tax refund or amount you may owe the IRS next April 2012. In 2011, Federal income tax rates were scheduled to increase to pre-2001 levels, but the "Tax Hike Prevention Act of 2010" left the existing tax brackets in place through 2012. Please note that this calculator uses the preliminary 2011 tax tables.

.


OK now go for it you now have a starting point for your future planning.

Have fun and play some games with the estimated tax calculator.

Standard deduction to use (after any income phase-out) $

Deduction for exemptions $

Taxable income $

Tax* $

Hope that you find the above enclosed information useful for your situation and good luck to you in your future. 05/17/2011
Oswin
 
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Should We Get Married This Year?

Postby cocidius77 » Sat Sep 23, 2017 2:04 pm

She makes over $120K a year? If you don't marry her, I will.

But seriously, she makes too much for the student loan deduction even if you are married filing jointly, the limit is $120K.
So only marry if you two are both sure.

From the tax tables, the difference isn't really huge, you'd be barely in the 28% tax bracket as a couple, and she's well into the 28% tax bracket as a single.
So don't marry only for financial reasons.

_
cocidius77
 
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Should We Get Married This Year?

Postby Amall » Sun Sep 24, 2017 9:17 pm

no longer likely you purely stated as her old. genuine regardless of if it harm her thoughts. apoligized on a notice linked to plant lifestyles and deliver then to her artwork or something. and purchase her chocolate. purchase her something little decrease priced yet she would somewhat like. no longer something that refers back to the "humorous tale nonetheless" good success happy vacations
Amall
 
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Should We Get Married This Year?

Postby sayres » Sat Sep 30, 2017 1:04 am

You'd most likely save taxes by getting married in 2011.
And if you could then be covered under her health insurance, that might be worth more than the tax savings.
sayres
 
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Should We Get Married This Year?

Postby Tamtun » Wed Oct 04, 2017 4:12 pm

Her tax bracket has no affect on her ability to claim student loan interest.


getting married would be a tax benefit to you ,yes.
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