What are the tax implications of a marriage?

In Illinois, marriage is a legal contract between two individuals that carries significant financial implications with regard to taxation. When a married couple files a joint tax return, they are often eligible for certain deductions and credits available only to spouses filing jointly. For example, married taxpayers may deduct medical expenses that are greater than a certain percentage of their gross income. Additionally, a married couple may be able to claim a larger standard deduction than if they filed individually. The Internal Revenue Service (IRS) generally imposes a marriage penalty for those couples filing jointly who have roughly equal incomes. This penalty causes some couples to owe a higher amount in taxes when filing jointly. As a result, it is beneficial to consider how different income levels will affect the tax consequences of joint filing. Moreover, married couples may be eligible for certain credits not available to unmarried persons. Such credits may include the child tax credit, the earned income tax credit, and the adoption credit. Additionally, the IRS allows married couples to transfer up to $500,000 of gain on the sale of a principal residence tax-free. In summary, marriage brings with it various tax implications, both positive and negative. It is wise for couples to consider the impact marriage may have on their tax situation, and to take steps to maximize their financial benefits.

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What are the tax implications of a marriage?

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