If you are getting married this year, you might want to know that even if
you marry on December 31st this year, the IRS will consider you married for the
entire 2012. Along with music, dresses, food, laughs and love, you will
also enjoy many tax benefits after you are married. That is if you choose to
file taxes jointly. Apart from of course lower tax rates that all married
couples who file jointly enjoy, some other tax benefits both you and your spouse
will have are:
Freedom towards contributing
to the IRA
If either you or your spouse has taxable compensation,
either of you can make a contribution to an IRA. This benefit is not enjoyed by
individual taxpayers who do not have taxable compensation. The working spouse
can make a spousal IRA contribution for the non-working spouse.
Retirement is the last thing you think about when
getting married, but tax laws dictate that both you and your spouse can benefit
from a retirement account even if either one of you is not the account owner.
You can make your spouse a beneficiary to your retirement account.
Withdrawing from retirement
It is not something
anybody expects from a spouse, but many times a spouse may withdraw large
amounts of retirement assets without the knowledge of their spouse. That can hurt
the retirement years of the couple. Luckily, in most cases a spouse can cash
out without the other’s consent only if the accrued balance is $5,000 or less.
If a married couple has been filing taxes jointly and a
spouse incurs a tax liability without the knowledge or fault of the other, the
innocent spouse may be cleared of any responsibility towards paying the tax
liability. Taxpayers who file for innocent spouse relief whether they are
married, separated or divorced, may use the services of a tax expert to qualify
for this IRS relief program.
Labels: IRS, Marriage and Taxes, Tax Filing, Taxpayers