Married life comes with its fair share of changes, especially with your finances. The process of tax preparation grows more complicated as you decide whether to file jointly or independently. Joint filing benefits most couples from a savings perspective, and the more informed you are about the current tax code, the higher return you will see.

4 Ways Getting Married Affects Tax Preparation

1. No Worries About Estate Tax

If you are single and possess significant assets and property, you are subject to an estate tax. Married people are protected against this since you can leave your estate to your partner without incurring a significant expense. If you leave anything to other family members, it will be subject to taxes.

2. You Can Utilize Itemized Deductions

Itemized deductions are eligible products and services that can be subtracted from your gross income to reduce the amount you pay in taxes. These can include charitable donations, medical and dental expenses, and student loan payments up to $2,500. While single people can also make use of itemized deductions, most opt for the standard deduction out of convenience. Conversely, many married couples reap more significant benefits when using itemized deductions. While the process is more complex, itemized deductions may significantly decrease the tax burden of some married couples. 

3. Marriage Raises Charitable Giving Limits

Any money given to charitable organizations is deducted from your taxes as part of itemized deductions. Because deduction limits are based on income, combining your income with your spouse’s means you can raise your deduction amount. This is beneficial if you or your spouse make significant donations to charity, as it will lower the amount you owe in taxes. 

4. Filing a Joint Return Is Easier

Filing two returns means double the paperwork and time spent on tax preparation. When couples file jointly, only one return is necessary. This dramatically reduces the time and energy spent on filling out forms and bringing together essential documents, such as receipts or bank statements. If you are working with an accountant that charges an hourly rate, this will decrease the amount of time spent on your tax process and keep money in your wallet. 

If you have questions about tax preparation in Honolulu, HI, Tudor Wilson & Associates CPAs, LLC has the answers you need. If you’re recently married, they’ll walk you through the joint-filing process while also helping you pin down possible deductions. Along with individuals, they also perform tax planning and preparation for business owners with complex situations. Other services include retirement planning, QuickBooks® advising, and forensic accounting. Schedule a consultation today by calling (808) 592-2000. You can also learn more about the full listing of services by visiting the website.