This year, we got married and purchased our first house- worried about taxes.?

Question

Hi! My husband and I purchased our first home in January before getting married in June. We have talked to several other couples that had to pay in at tax time the first year they married. Why is this? Previously, we both just filed with standard deductions so we aren't familiar with what is considered a deduction. Thanks for your help.

Answer 1

If you each make a pretty good salary, then the withholding tables don't work very well to take enough out if you claim all of the allowances it appears you are entitled to - that's probably what happened to your friends.

Answer 2

The biggest mistake couples make after they get married is to change their W4's to say "Married".  If you put "Married" on your W4, your employer will withhold less taxes.  If you are both working, leave your W4's at "Single".

Find a tax preparer that you can sit down with now so you won't be in for any surprises come tax time.

Edit-

Itemized Deductions:

Medical Expenses (to the extent that they exceed 7.5% of income)

State Income Taxes

Real Property Taxes

Personal Property Taxes

Mortgage Interest

Points Paid at Closing

PMI (if applicable)

Charitable Contributions

Out of pocket expenses for work and other Misc. deductions(to the extent that they exceed 2% of income)

Answer 3

our accountant files us as "married, filing separately"...talk to an accountant about filing status and why a status like ours could help

Answer 4

If they had to pay then they were claiming to many deductions. If you want money back at the end of the year claim no deductions. Your house interest is one of the few tax deductions we have left