Once your Married ( Taxes)

Original post by Beth1210

Apr 28, 2006 10:02 AM

I just changed my with holding from SIngle 1 to married 1

and I got $155 more in my pay check- which is over $300 more a month- that's pretty cool!!!!!!

I have to redo my budget!

jenntony Posted: Apr 28, 2006 12:56 PM

Re: Once your Married ( Taxes)

Posted by stephanief

I am actually keeping my witholdings at single zero. I would rather get a big refund at the end of the year

we are doing the same, it's no different that what we have now and our expenses aren't going to change once we get married

BHW Posted: Apr 28, 2006 05:33 PM

Re: Once your Married ( Taxes)

Posted by Beth1210

Posted by Sunrise813

I think its best to keep things the same and just get more at the end of the year. I would hate to have to oay a big lump sum at year end!

but then you lend the governmenet your money interest free- I can pay off alot more credit card bills this way and put more toward my savings-

even if you just put the money in the bank yourself and then back part of it in taxes- you are still ahead

I completely agree. There's no reason to give the government $ when you can put it into an interest bearing account and make more $.

KandE917 Posted: Apr 28, 2006 05:37 PM

Re: Once your Married ( Taxes)

all of my married friends owed big $ their first year filing joint. Their accountants all told them to claim 0 (zero) so they don't owe anything - that's what we're going to do.

kase21 Posted: Apr 28, 2006 05:41 PM

Re: Once your Married ( Taxes)

There are a couple of things..

I prefer getting the lump sum back at the end of the year.. I would spend the extra $$ per check - a one time sum benefits me in April when i want to take a trip. I'd be more pi$$ed if i owed...

The other thing is that with people getting married, sometimes it benefits you not to change your name right away. this way you still have the option to file single on your tax return - you can always file married filing jointly but sometimes it's better to leave the option open to see what changes you need to make for the upcoming year... after you submit your return and get your $$, change your name.

just a thought.

kittythestray Posted: Apr 28, 2006 05:43 PM

Re: Once your Married ( Taxes)

Well, it's a forced savings. Some people won't put that extra $50 a week into a savings account, but when they get $2500 at the end of the year they'll do something productive with it. It depends on your personal spending habits. Most of my clients prefer the forced savings because they KNOW they'll just blow the extra $$ in their paycheck without noticing it. If you and DH are good with money then you're better off owing a little at the end so that you're making your money work for you, but the problem is most couples just ASSUME they'll be getting a refund and don't prepare for it. Also, you should ask your accountant for a Married Filing Joint/Married Filing separate comparison because 99% of the time you're better off filing JOINT. Also, don't confuse your DEDUCTIONS from your paycheck with your FILING STATUS. You can be withholding as Single - 0 but your tax return filing status is Married and you have 2 personal exemptions. The way you withhold does not lock you into the way you file your return.

roxyvelas Posted: Apr 28, 2006 05:47 PM

Re: Once your Married ( Taxes)

I always assumed that once you get married you get less money back in taxes

rlgirl Posted: Apr 28, 2006 07:24 PM

Re: Once your Married ( Taxes)

Posted by kittythestray

Just be careful because come year end you may not have enough w/h to cover your taxes - MANY 2 income people get a surprise at year end when they OWE because they were underwithholding (especially when you consider AMT which most dual income families on LI are affected by!!) Look at the percentage that you're withholding and then what tax bracket you'll be in as a married couple. If you're only w/h 15% but wind up in the 25% tax bracket it could be a problem. Obviously you may have deductions or other factors, but I always stress to my clients to check with me before they do things like that (I'm a tax accountant) Your accountant can run an estimate for you. (or you can FM me)

you have fm!