Did the 2003 tax law provide any relief from the marriage penalty?
Some couples might pay more tax together than they would pay if they were single -- thus, the so-called marriage penalty. The 2003 law didn’t solve the problem, but it did provide some relief. The standard deduction for couples filing jointly is now twice the standard deduction for single filers.
For 2007, the standard deduction is $5,350 for singles and 10,700 for married couples filing jointly.
For 2008, the standard deduction is $5,450 for singles and $10,900 for married couples filing jointly.
The tax brackets and the phase-outs for the earned income credit have also been adjusted to be more equitable to married couples.
Do all married couples pay more in taxes than they would if they were single?
While the so-called marriage penalty affects some couples, other couples pay less total tax than they would if they were single. If one spouse makes considerably more money than the other, filing jointly can place them in a lower tax bracket, lowering their tax bill.
How will getting married affect my financial planning?
The short answer is when you get married, you must plan with at least two people in mind, not one.
Marriage affects every aspect of your life, including your money. You’ll need to revise everything from health, property, casualty and life insurance to checking, savings, investment and retirement accounts. If either of you have kids from a previous marriage, you’ll need to agree on decisions such as child care and college planning.
Make a budget and a long-term financial plan as soon as possible. The sooner you get on the same page, the fewer misunderstandings you will have and the more successfully you will be able to plan your future together.
What is a prenuptial agreement?
If you’re getting married and either of you has children, has been married before, or has a large estate, you or your intended may want to formulate and sign a premarital agreement -- also known as a prenuptial agreement or, simply, a pre-nup.
Prenuptial agreements define the separate properties brought into the marriage and your financial intentions after you’re wed.
Premarital agreements may contain a limitation or waiver of alimony should you ever divorce, or a provision under which one spouse gives up all rights or limits his or her rights to the other’s estate.
What is a post-marital agreement?
A post-marital agreement is like a prenuptial agreement, except you sign it after you marry. You can use a post-marital agreement to settle beforehand, under more amicable circumstances, what would happen to your property should you ever divorce. You can also use it to clarify who has rights to certain property, such as a family business.
If you already have a prenuptial agreement, you can update or renegotiate it with a post-marital agreement. Both of you should seek independent legal advice before you sign.
Will my Social Security number change after I get married?
Your Social Security number never changes. If you change your name, however, you need to get a new card with your new name and your old number. You can start the process at the
Social Security Administration web site.
Will I lose the survivor benefits I collect from Social Security if I remarry?
Unless you are age 60 or older, you may lose your Social Security
survivor benefits when you remarry. If you are 60 or older, you will still get survivor benefits. If you are at retirement age and you remarry, you could get a surprise. Your monthly Social Security check may actually increase if you qualify for higher benefits based on your new spouse’s earnings history.
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