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Scrimp- have you ever prepared a tax return? if so have you ever filled out a long form (1040, not the 1040A or the 1040 EZ)?
My suggestion is you start to learn about taxes as you prepare.
For example, put in numbers with you being single (50k now) and see what taxed you owe. Check for deductions which apply to you beiong single.
Then put in numbers with you being married (50k now +42k now) and see what the tax is. Also check to see what deductions apply to you being married.
If you have the ammortization table handy- estimate what 12 months of mortgage interest are (add up the interest paid on first 12 payments). Estimate property taxes. If you are eligible for the moving deductions, count those in too.
You might find it surprising you owe less on the second return with the married status. Regardless of the deductions.
Then bump the income up to 120k combined on the married return. Look what the tax is. Then also look to see if any of the deductions get removed.
Bump it up to 130k and do same thing. You could get an old copy of turbo tax, run through this at turbo tax online, or do the form by hand.
You should start to look for the following- what gross income is the Roth IRA phased out for you? If you up 401k, can you get back under the limit?
In my tax class we do all the forms by hand so we know what each line is for on the 1040. Then a computer calculates the returns for us with clients.
I point this out because the first 3-10 years of your marriage are important financial years. It will be your lowest income, so you will be eligible for the Roth, for example. Once you earn more and are phased out, you can't go back and some simple planning could probably take 8 years of being eligible and extend them to 12 years, for example.
My suggestion is you start to learn about taxes as you prepare.
For example, put in numbers with you being single (50k now) and see what taxed you owe. Check for deductions which apply to you beiong single.
Then put in numbers with you being married (50k now +42k now) and see what the tax is. Also check to see what deductions apply to you being married.
If you have the ammortization table handy- estimate what 12 months of mortgage interest are (add up the interest paid on first 12 payments). Estimate property taxes. If you are eligible for the moving deductions, count those in too.
You might find it surprising you owe less on the second return with the married status. Regardless of the deductions.
Then bump the income up to 120k combined on the married return. Look what the tax is. Then also look to see if any of the deductions get removed.
Bump it up to 130k and do same thing. You could get an old copy of turbo tax, run through this at turbo tax online, or do the form by hand.
You should start to look for the following- what gross income is the Roth IRA phased out for you? If you up 401k, can you get back under the limit?
In my tax class we do all the forms by hand so we know what each line is for on the 1040. Then a computer calculates the returns for us with clients.
I point this out because the first 3-10 years of your marriage are important financial years. It will be your lowest income, so you will be eligible for the Roth, for example. Once you earn more and are phased out, you can't go back and some simple planning could probably take 8 years of being eligible and extend them to 12 years, for example.
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