Question

2020 Mortgage and marriage

Forum|Forum|5 years ago
November 29, 2020
3 replies
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My significant other and I purchased a house in 2020. We're going to get married but would like to do it in the best way possible for our taxes in 2020. Should we get married before the next tax deadline and file jointly with our new mortgage? Should we not marry this year and file as individuals with 50/50 on the mortgage? Or is there a third option I'm not seeing?

Not A Product Question

VolvoGirl

Employee

Check out this thread. It is similar to yours.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/fiancee-and-i-just-bought-a-house-best-way-to-file-for-taxes-without-being-married-for-2020/00/1743152

Y

yevinAuthor

I read through the thread. I have some more questions. We bought the home early in 2020 (end of feb). So, we'll have a full year's worth of mortgage payments. Would that be enough to warrant itemized deductions? If so, should we get married in order to make filing easier?

Also, we moved from CA to WI for his job. I work from home full time for my job in California. I use a home office and I had to purchase furnishings in order to work (desk, chair, internet, etc.). My employer did not compensate for my new work environment. Would I be able to deduct that portion of the house for business purposes? Would I also be able to itemize this?

X

xmasbaby0

Employee

If you read through that other thread then you must already be aware that it is very hard for most people to use itemized deductions since the tax laws and the standard deductions changed after 2017. You can try using the taxcaster tool to see how your tax returns may look for 2020:

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Or--if you are tying to base the VERY important decision as to when to get married on income taxes for 2020, buy the desktop software for 2020 and use it to prepare some "dummy" returns as Single or Married Filing Jointly to compare, and see how it turns out. If you use desktop, you can prepare an unlimited number of returns to try out various scenarios.

https://turbotax.intuit.com/personal-taxes/cd-download/

...."My employer did not compensate me.....

If you are a W-2 employee you cannot deduct a home office on your federal return. As of the tax laws that changed for 2018 and beyond, W-2 employees cannot deduct job-related expenses on a federal return.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

X

xmasbaby0

Employee

For income tax return purposes, your filing status is determined by the last day of the tax year--not by the tax filing deadline. So if you want to file as married for a 2020 tax return you have to be legally married by December 31, 2020. If you wait and get married in 2021 then for 2020's tax returns you are both Single, and for 2021 (which you file in 2022) you can file as married--assuming you get married in 2021.

Best Wishes!

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Carl11_2

Employee

If you are not legally married on or before Dec 31 2020, then for each your filing status will be single. Period. Each of you can claim the mortgage interest and property taxes that each of you individually were:

1) Legally obligated to pay, and

2) Actually paid.

If both of your names are on the mortgage and the property deed, then no issues here.

If you are legally married on or before Dec 31 2020, then the "single" filing status is not available to either of you. You must either file as Married Filing Joint, or Married filing Separate.

Since mortgage interest and property taxes are your only deductions, and those are itemized deductions on SCH A, it is very doubtful that your itemized deductions will exceed your standard deduction regardless of weather your married or not, or if you file joint or separate returns if you are married. So unless you have other itemized deductions that will exceed your standard deduction, planning your marriage date for tax purposes is pointless.

If filing single or married filing separate, your standard deduction for 2020 is $12,400

If filing married filing joint, your standard deduction is $24,800.

Again, it is very doubtful your itemized deductions will come anywhere close to your standard deduction, regardless of your marital status, or how you file. Especially with the limits impost on SALT deductions. (State and Local Taxes).