Marriage is in the news these days. Straight marriage, Gay marriage, marriage equality. Marriage is many, many things to many, many different sorts of folks. Let’s leave the politics aside for a moment and focus a bit on the tax issues. Marriage has huge tax implications. In some situations, two “single” persons might pay more taxes than two “married” people with the same incomes, or the reverse. It all depends.
Generally speaking, if you are married or are thinking of getting married, reach out to a tax professional to plan your taxes. We work with many high income couples in San Francisco, either getting married or thinking of getting married, and help them plan out their tax strategies. We can also work with couples who are not married (heterosexual or homosexual) and help them plan out their best tax strategies. Each couple is unique: our goal is to create the best strategy to minimize taxes. Getting married is great! Paying taxes, not so much.
Informational Resources on Marriage and Taxes
Here are some informational resources on marriage and taxes –
- Taxes: Who Gets a Marriage Bonus and Who a Penalty – an informative video.
- The Marriage Penalty at Wikipedia.
- The Marriage Penalty at The Tax Policy Center.
A little more on the politics and tax intersection, please read this news release from September 23, 2013, by the IRS entitled, Treasury and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized For Federal Tax Purposes; Ruling Provides Certainty, Benefits and Protections Under Federal Tax Law for Same-Sex Married Couples. The IRS also has a Frequently Asked Questions document on same sex marriage, here.
In sum, whether you are single, living together, married, gay, straight, or anything in between – taxes are certain. But be sure to reach out to a tax professional to create a strategy to minimize taxes.