Tax Question: Getting Married

[GiovanniC]

Okay, so on December 31 of this year, I will be getting married to a wonderful woman with four beautiful children. I am single without any children (that I know of... ba dum bum).

Here is my question: since we are getting married in 2005, will we have to file as married next year on our '05 taxes, even though we will only have been married for a few hours of this year? Will we have the option of filing as either single OR married?

She makes about $18,000 a year, and I make about $32,000 a year. Currently, she gets all her taxes back plus some. In general terms, wouldn't it be more beneficial if we filed as single for the 2005 tax year? Anyone know?

[liberalhistorian]

1. Even married people can still file

separately if they want, married couples do not automatically have to file jointly. I know several couples who do just that, file separately. I've never been married, though, and I'm not an accountant, so I don't have any answers for the rest of your questions.

[Goldmund]

2. Use Turbotax for the web.

You can enter all of your data, and then simply change the way you want it filed and see which way you'll get more refund.

[Gunit_Sangh]

3. not a tax expoert ... but

You'll probably be required to file as Married. I don't think it matters what date you get married, it's whatever your status is at 11:59 PM Dec 31.

It's the same situation if you have a child. If the child is born on Dec 31, you can still claim the child as a dependent on your 2005 taxes.

[SW FL Dem]

7. I think you are correct

I thought of the child exemption analogy too.

[BR_Parkway]

4. You can pick married, or married filing seperately - figure it both way

and pick the one that's most beneficial. You also have some additional limits on how much you can fund IRA's and other retirement options that have increased once you're marital status changes, don't forget to look at those also.

Congrats

[Bouncy Ball]

5. Married filing jointly gets you the best (lowest) tax rate

AND the highest standard deduction. Which is why we have always filed jointly.

We were married in December, too and we filed for that whole year (because you can).

If you are unsure, just wait until you get your W-2s for 2005 and get a tax book and look at it both ways and see which way you come out better!

[papau]

6. Marriage BONUS largest for most disparate incomes

The marriage penalty still exists for couples in tax brackets above 15 percent, but is to phase out - sort of - for those in the 15% bracket by making the amounts of the standard deduction and the top of the 15 percent bracket exactly twice as high for married couples as they were for singles - but not until 2009.

I have not followed this closely but I would be surprised if the 2009 date has not been accelerated to current year. If it has not, the value of the standard deduction for married couples will be in 2005 174 percent, in 2006, the value will be 184 percent, then to 187 percent in 2007, 190 percent in 2008, and finally back up to 200 percent in 2009. Similarly, the top end of the 15-percent bracket for couples will drop from 200 percent of what it is for singles (2004) to 174 percent (2005), then back up to 184 percent (2006), then to 187 percent (2007), 190 percent (2008), and finally back up to 200 percent in 2009.

But I suspect based on the facts you present that filing married will give you a BONUS - and not a "penalty".

[forgethell]

8. You can file

as married as long as you got married in '05. And you should file jointly. Cheapest that way, believe me. Married filing separately is the most expensive.

But hey, read in the instructions, fill it ou al 3 ways and see.

[readmylips]

9. I don't care about your tax...I care about you parenting 4 kids...

you did not father. My friend Phillip married a beatiful woman with 4 kids. He was the best father those 4 kids ever had. All the kids went to college, are married and they are new happy grandparents. For Phillip, those 4 kids always came first. Now Phillip and wife are enjoying their beautiful life like newly weds. I love this story.

[GiovanniC]

10. I Just Don't Want to Take Any Food Off My New Family

The kids are wonderful... my fiance's ex-husband (the father of 3 of the children) seems like a great guy too, so these children will have no shortage of loving male role models.

[readmylips]

11. I'm so happy for those kids....

they'll have plenty of love and moral support. You are a hero.

[Sgent]

12. A few issues

You have two options:

Married Filing Jointly (MFJ)
Married Filing Separately (MFS)

For almost all couples, a MFJ return is the way to go, as it will result in the lowest total tax.

That being said, if you are affected by the AMT, or one spouse earns significantly more than the other and there are Schedule A deductions, or if one spouse has a Scedule C, it can be beneficial to file MFS.

One final note, your lowest tax rate is as two singles (not married). That being the case, I might check with your local records bureau to see if you cant record the marrige after the 1st, even if the ceremony is on the 31st.