When it comes to tax season, there is a lot to remember, consider, and think about. It is important not to overlook any detail or any vital piece of information. By doing that, the taxpayer might be missing out on a bigger refund or run into some issues. That is why you should always do as much research as possible and know what category you fall into, for this particular year.
This is especially true when it comes to newlyweds. It is often analyzed, discussed at great length, and thought over when certain questions are raised:
- Should we file together or separately?
- What is the better choice?
- What is the smartest decision?
- Will we get a tax break or will we get penalized?
One thing to remember is that as long as the couple became married before December 31st, they are considered a married couple, no matter how long or how short they have been married in that particular calendar year.
It’s imperative to think about how they want to file and what the best course of action is for the both of them. Nine times out of ten, it is smarter to file together as more deductions can occur, and that will definitely be in their favor.
However, if one’s financial situation is drastically different from the others’; it might be a good idea to file separately. This can be a messy and sometimes unpleasant thing to discuss, but with any good marriage and especially if you are newlyweds, it is important to be honest and look at this from the best possible perspective for the both of them, not just one person in particular.
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It’s safer, smarter, and it just makes more sense for most couples to file together. Not only that, but it brings a couple closer together and makes them feel as one. It is exciting to file together and see what kind of return they will get when all of the deductions are figured out.
Nevertheless, if it just isn’t right for one party, it is important to look at it from a non-emotional perspective and file separately. Everyone is different, of course, and there is nothing wrong with that, but it requires careful planning and great thought before making any major decisions.
These are all things that the newlyweds should sit down and discuss and really examine from both points of view before doing anything. The last thing they want to do is something they will regret or something that will lose them money.
Everyone could use a little extra money these days, especially during tax season, so the more tax money that can be received, the better off they will be in the long run. It all starts with an open and honest dialogue.