O.k. I'm going to be getting married soon, I live in Kentucky, my employer mentioned to marriage tax credit, at the time I didn't think to ask, but now i'm curious. What is it? How does it work? Does it increase or decrease your taxes?
2007-05-22 11:25:16 · 2 answers · asked by Ash 3 in Business & Finance ➔ Taxes ➔ United States
Wayne is correct. Their is no marriage tax credit on the federal return. The last Kentucky return I prepared was several years ago, but I don't remember a state credit either. Kentucky has a personal tax credit of about $20 each, but thats it. A couple years ago, the standard deduction for married couples was raised to be double that of a single person. Many people referred to that as "removing the marriage penalty." Contact a good CPA for help now. Often your withholding will need to be adjusted for two income earners or you may owe next april.
2007-05-22 11:50:25 · answer #1 · answered by BS 3 · 0⤊ 0⤋
Tax Credits decrease your taxes.
There is no such thing as a Marriage Credit on the Federal return so it might be something on the Kentucky return.
Minnesota has a Marriage Credit available but the maximum credit is like $182.00 so it is not a huge deal. Unfortunately, I am unsure about the Kentucky return.
2007-05-22 11:32:30 · answer #2 · answered by Wayne Z 7 · 1⤊ 0⤋