Tax breaks for getting married datasheet

redbeard

Hummingbird
Gold Member
Now that I'm entering my thirties, I'm getting to the point where many of my friends are ditching the bachelor life and settling down with a main girl. Despite that, very few of them are getting married. :dodgy: Most of them claim that it's "too expensive" and they're "waiting until their financial situation improves." :huh:

I get that, but everyone who's seen Idiocracy knows how that goes:
If Clevon can sire ten kids, so can you. :banana:

Thankfully, you might not have to "wait for the right time" thanks to tax breaks. In the United States, there are a handful of tax benefits that can help you afford settling down and having kids.

This might seem like old news to some of the older guys here, but I was totally shocked at how much money you can save by getting hitched, so I figured I'd share.

Filing jointly

The IRS allows married couples to file taxes as if they're one entity. This is to help stay at home moms who have large income disparities with their husbands. There's two big benefits to filing jointly.

First - double standard deduction. The single standard deduction is currently $12k for single folk. If you and your wife file jointly, that's bumped up to $24k.

Second, lowered tax brackets. For whatever reason, the IRS decided to penalize people for being single, and let married people pay less taxes. Click here for a full list of tax brackets.

Let's pretend you make $75k a year. If you file alone, you'll be able to deduct $12k and fall into the 22% tax bracket. Married? Deduct $24k and drop to the 12% bracket.

Using this calculator, you'll see that you can save $4k a year by filing jointly.

Spousal investments

Even if your wife doesn't work, you can open an IRA in her name and make tax-free contributions. That's $6,000 you can contribute to a Roth/Traditional IRA to dodge taxes.

On top of that, the HSA (health savings account) contribution limit is doubled for married couples. Normally, you can only contribute $3,500 pre-tax to an HSA, but as a couple, you can contribute $7,000.

Another benefit that doubles is the property investment exclusion. If you sell your home as a single man, you can exclude $250k from your taxes. If you live together, you can now exclude $500k on the sale of your house for big tax savings.

Get cash for having kids

Lastly, when you start popping kids out, you can collect the Child Tax Credit. As long as you make less than $400k/yr, you're eligible for this credit, which knocks $2k off your bill per kid under 17 years old that you claim as a dependent.

Remember, this is a tax credit, not a deduction, so you could get paid cash for having kids. From Motley Fool:

Tax reform also made another important change to the child tax credit. Previously, the credit was nonrefundable (although some families qualified for an additional child tax credit that was refundable). Now, up to $1,400 of the child tax credit is refundable. If your total federal tax bill is just $100, for example, then credit could reduce your tax liability to $0, and then you'd get back $1,300 from the government.

There is a catch, though. The refundable portion of the credit is capped at 15% of earned income exceeding $4,500. You'd need to earn at least $13,833 to get the full $1,400 refund back.

At the end of the day, getting married and having kids is a considerable expense, but thanks to tax perks, it might be cheaper than you think.

Hope this helps!

:american:
 

Dr. Howard

Peacock
Gold Member
^ A fellow taxation nerd.

If you get married and pop out a kid in the US you have no reason to starve again. If you fall on hard times, income wise, the multitude of social programs that exist will have you with discounted housing, free grocery money, discounted utilities, tax credit cash from the government, discounted child care, free medical insurance and free money for re-education. Benefits wise it adds up to close to the equivalent of making $60k/yr while you hold your taxable family income to less than $30k.

These programs are normally used by people in poverty with dysfunctional families, no motivation or vices that mean that they will never take advantage of this situation. If this is you, you are in the other boat of people who know how to work this system...muslim immigrants.

On the other hand, if you are making money, you've got the tax benefits Red Beard has mentioned...the game gets upped again when you are self employed and have a spouse that isn't currently working outside the home.
 

redbeard

Hummingbird
Gold Member
Millenial cucks be like:

"I can't afford to have kids!"

At the same time:

Couples Spend an Average of $33,931 on Weddings, Creating Completely Personalized Celebrations With Emphasis on Reclaiming and Redefining Tradition, According to The Knot 2018 Real Weddings Study

Source
 
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