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Just Got Married? Here’s How to Prepare for Next Year’s Taxes In Denver
Once you’re married, a lot of changes happen, both in your personal life and in your finances. As a couple, it’s important to stay on top of your taxes to make sure that you’re getting the most out of your combined income. Your Denver accountant can make sure you have considered all needed aspects of this change and provide sound advice for your financial status.
The first thing to take into account is that your tax liability will change depending on your spouse’s income. Make sure to adjust your tax withholding with your employer to make sure that you don’t over or under pay your taxes. If you find out your tax liability is lower now that you’re married, you can increase your W-4 allowances, which allows you to have less income tax taken out of each paycheck. If your spouse’s income is higher or comparable to yours, your total tax liability may increase. Make sure to check with your employer to change your holding allowance.
Itemize Your Deductions
When you’re married, it may make sense to itemize your deductions instead of using a standard deduction to save more money. When you itemize deductions, it can get a little more complicated and require more effort – it is smart to contact a tax specialist to get help with this.
Decide to File Jointly or Separately
After you’re married, you have the option to file jointly or separately and make sure that you’re getting the lowest tax liability. Keep in mind that when you file separately while married, you may lose some tax credits and deductions such as education tax benefits and earned income tax credit.
Many things change when you get married, including your finances and taxes. Make sure that you get the most out of it by contacting a tax preparer for expert advice on your tax status after marriage and what it means for your financial future.