![]() ![]() There are some requirements that must be satisfied - such as the loan must be secured by your main home - but you generally don't have to wait to deduct points paid for a standard mortgage. In most cases, the points you pay on a loan to buy, build or substantially improve your primary residence are fully deductible in the year you pay them. You usually have to pay "points" to the lender when you take out a mortgage. (Your spouse can do the same.) If you've had the account for five years, the earnings will be tax-free, too. (The IRS has already taken its cut.) You can also withdraw up to $10,000 in earnings before age 59½ to help buy a first home without being hit with the 10% penalty for early withdrawals. With a Roth IRA, you can withdraw contributions at any time and for any reason without facing a tax or penalty. ![]() (To qualify as a first home, you and your spouse cannot have owned a home for the past two years.) However, even though you escape the penalty, you're still required to pay tax on the amount you withdraw. If you're married, both you and your spouse can each withdraw $10,000 from separate IRAs without paying the penalty. Savers with a traditional IRA can withdraw up to $10,000 from the account to buy, build or rebuild a first home without paying the 10% early-withdrawal penalty - even if you're younger than age 59½. If you have an IRA or a 401(k) account, you might be able to tap into those funds to help you buy a home. Getting married is one of life’s biggest milestones, so you and your spouse should be able to reap all of the tax benefits for your big day!įor more advice, find out how to discuss money with your significant other, see what happens when you change your last name, discover the pros and cons of getting a joint bank account after the wedding, and learn how to change your last name.Using Retirement Funds for a Down Paymentīefore you can become a homeowner, you have to scrape up enough money for a down payment. By keeping all of your receipts and contracts, you’ll be able to claim your deductions, boost your tax refund, and have extra funds to toast your wedded bliss and tuck away for your next big life moment, such as a down payment on your first home together. While wedding planning can be hectic, don’t forget to track your wedding write-offs along with your overall budget. You can gather charitable rebates with wedding purchases through the foundation and even create a charity registry where guests can also donate to celebrate your special day. In order to include your wedding party and guests in the decision, have them vote or ask them for suggestions regarding the charity you donate to if you don't have one already selected.Įxplore a wedding gift registry such as The Good Beginning from famed event planner Beth Helmstetter that gives guests the option to donate to your favorite charity. Instead of soon-forgotten trinkets branded with your wedding hashtag, make a donation to a charity on behalf of everyone in your wedding as well as your guests, and you’ll be helping others while garnering yourself a tax deduction. If you had a huge bridal party, encourage your bridesmaids and flower girls to do the same! Don’t forget to grab a receipt, so you can take a deduction for the value of the items donated.Įven if your bridal gown was one of the biggest line items in your budget, you may want to consider donating it to a non-profit organization, such as Making Memories, Brides Against Breast Cancer, or Brides Across America, to help others enjoy their special day in style. If you have flowers and/or wedding decorations left over after you tie the knot, have a friend or family member take the flowers to a homeless shelter, women’s center, or similar non-profit organization. It may be worth increasing your donations for the year to get a triple benefit: a fee waiver, a tax write-off, and positive vibes for donating to a good cause. If not, ask if they will waive ceremony fees for members who donate at a certain level. ![]() ![]() Or, if you choose to get married in a church and you’re paying a ceremony fee, it may also be tax deductible. If you and your spouse-to-be are getting married or having your reception at a historical garden, museum, or even a state or national park, the fee you pay for the space may be tax deductible as a donation. Photo by Valorie Darling Photography From Real Wedding: Real Wedding with Rustic Organic Ambience in Downtown Los Angeles If you got married last year and are preparing to file your taxes, check out the five tax deductions that you may be eligible for, below! While these large events can certainly add up, what many people don’t know is that some of your wedding-related purchases can be tax deductible. No matter the budget for your big day, the final tally for wedding costs is usually more than what couples anticipate. ![]()
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