Family 3 Reasons It’s Great to Be Coupled Up at Tax Time Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Feb 9, 2024 - [Updated Mar 22, 2024] 2 min read Reviewed by Katharina Reekmans, Enrolled Agent Happy Valentine’s Day week to all of the lovebirds out there! Whether you’re enjoying a night out on the town or staying in for a movie night, we want to give you even more reasons to celebrate with your loved one with…you guessed it: tax benefits! So, grab your significant other and read up on some of the perks of being coupled up come tax time. Married couples filing jointly generally benefit from lower income tax rates than couples filing separately. This is especially attractive to couples with differing levels of income, but this is not the only way that marriage can have a positive impact on the size of your tax bill. A number of tax benefits may only be available to couples who file jointly, including: Table of Contents Unlimited Marital DeductionLarger Tax-Free GiftsYou Can Qualify for Earned Income Tax Credit Unlimited Marital Deduction One of the most powerful tax benefits available to married couples is the unlimited marital deduction allowing assets to be transferred to a surviving spouse tax-free. Don’t ignore this! A freshly married couple in their mid-20s might not be thinking about estate planning, but as the years pass, it will increasingly loom large in their future decision-making. Larger Tax-Free Gifts Married couples also get more bang for their buck when it comes to the gift tax exclusion. Currently, there is an annual federal gift tax exclusion of $17,000 per spouse for 2023 ($18,000 for gifts made in 2024) meaning your recipient can “immediately and without restriction use, possess or enjoy the gifted property” without tax consequence to you. The gift tax exclusion applies to gifts for each donee. As a married couple, you get to combine this exclusion and can gift up to $34,000 tax-free per donee. So, this means that a married couple can gift up to $68,000 to two grandchildren tax-free. As your wealth grows, be mindful of ways to use the gift tax exclusion to strategically transfer assets to loved ones (or between each other). You Can Qualify for Earned Income Tax Credit As a married couple filing jointly, you may have an easier time qualifying for Earned Income Tax Credit since qualifying income for married couples can be more than someone that is single (up to $63,398 married filing jointly, up to $56,838 single for tax year 2023). This is really important to keep in mind since the Earned Income Tax Credit can be up to $6,935 for a married couple with three kids for tax year 2023. Don’t worry about knowing these tax rules. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Get started now Previous Post Taxes Done? Find Out Which Tax Records You Should Keep Next Post Can I Take the Home Office Deduction? Written by TurboTaxBlogTeam More from TurboTaxBlogTeam 5 responses to “3 Reasons It’s Great to Be Coupled Up at Tax Time” What is the biggest benefit versus last year for retired couple Reply If the marriage penalty tax is repealed can’t many married couples file as married filing separately and save taxes Reply My soon to be husband earns disability income from Social Security, I work fulltime. Can we file married jointly even though his income is not taxable? Reply What is the additional deduction for disability? Reply Yes I’m disabled both thru social security and veterans admin and I file jointly with my spouse Reply Leave a ReplyCancel reply Browse Related Articles Tax News Intuit TurboTax April Report: A Look at Refunds and S… Tax Planning April 15 is the Tax Deadline: 6 Things You Need to Know… Tax Planning Unable to Pay Your Tax Bill? Here’s What To Do Tax Tips Tax Credits 101: What They Are & How They Work Business How to Know if You Should Invest in Business Insurance Tax Deductions and Credits What Is the Standard Tax Deduction for 2023 – 202… 401K, IRA, Stocks Should You Use Your 401(k) or Retirement to Pay Off Deb… Tax Planning What Happens If You Don’t Pay Taxes? Understanding Pe… Tax Deductions and Credits Family Taxes: Take Advantage of Tax Savings Taxes 101 How Much Do You Have to Make to File Taxes? Demystifyin…
If the marriage penalty tax is repealed can’t many married couples file as married filing separately and save taxes Reply
My soon to be husband earns disability income from Social Security, I work fulltime. Can we file married jointly even though his income is not taxable? Reply
Yes I’m disabled both thru social security and veterans admin and I file jointly with my spouse Reply