# Marriage and Taxes standard deductions

Marriage and Taxes Introduction: Bill and Mary plan to marry in December of 2012. Bill’s salary is \$32,000 and he owns a residence. His itemized deductions total \$12,000. Mary’s salary is \$39,000. Her itemized deductions total only \$1,600 as she does not own a residence. Assume that 2013 tax rates, exemptions, and standard deductions are the same as 2012. Task(s): Answer the following questions: a.

What will their tax be if they marry before year-end and file a joint return? The file joint of returns will be \$12,000. b. What will their combined taxes be for the year if they delay the marriage until 2013? The combined taxes will be \$13,600 if they delay the marriage. \$12,000 + 1,600 = 13,600. c. What factors contribute to the difference in taxes? Some of the factors that can result a difference in the taxes would be based on your itemized deductions.

Examples a itemized deductions are mortgages that you own, have done any charitable donations, medical expenses, Long-term care services, and relocating for new employment. For a marriage case they can us the marriage penalty, Examples of a marriage penalty: (1) Both of the earns \$80,000 a year mas two single individuals, the marginal tax rate will be 25% However, if you are a married couple, the marginal tax rate on a \$160,000 annual income is 28%. 2) If you are married you are allowed to write off a total of \$3,000 in losses, if filing separately, each only has a \$1,500 limit; whereas two single individuals can write off a total of \$6,000. (3) When it comes to IRA contributions, they are phased out at income levels between \$178,000 – \$188,000 for married couples versus a range of \$112,000 – \$127,000 for single taxpayers. Ingenuity. Empathetic.