Do You Need Tax Advice Before You Get Married?
You may feel that planning for being married should be all about the romance, but you have practical stuff to think about too. For example, it's important to have a handle on your finances at this stage of life.
This can raise a lot of questions. Does marriage affect your taxes? Will you sell one of your current homes and move into the other? If you've never been married before, you may not know the answers to these kinds of questions.
To get things straight, think about booking an appointment with a tax specialist. How can this help?
Giving You the Basics
You'll have a pretty good handle on how your taxes work as a single person, but you may be wondering if things change after you get married.
A quick chat with a tax specialist brings you up to speed on how the system works for married couples. It also tells you if there is anything you need to do differently.
For example, you make some basic changes to your tax return once you're married. While you carry on filing and being taxed on your income separately, you both need to list each other's income on your returns.
This joint income can be important. For example, it may be used to calculate Medicare commitments and any family tax benefits you'll be entitled to in the future.
Helping You Manage Money
A chat with a tax specialist doesn't just help you meet your new tax obligations as a married couple; it can also help you manage and save money.
For example, once couples are married, they may be able to pool some superannuation contributions. This works well if one of you earns well but the other earns less. The high earner can give some super contributions to their partner to build their fund up more.
This is a complex procedure with a lot of regulations to negotiate. A tax advisor can help you assess if this is worth doing and, if so, how you should do it.
Plus, if you both currently own your own homes and plan to sell one, then a tax specialist can help you minimise your capital gains liabilities. These tax rules change when you're married and may affect the amount of money you take from a sale. Your advisor can help you choose the best way to manage this process so you save as much money as possible.
To learn more about how a tax advisor can help you and partner make a smooth financial move into married life, contact local accountants and make an appointment to see their tax advice specialist.