Two Income Married Couple Subtraction: Fill & Download for Free

My best advice for newly married couples is to always know how much money they have coming in on their paychecks and to know how much they owe each month.When combining households, each partner should pay off as much debt as possible. Not because couples need to be equal in all things, but because it's easier to know where they can be frivolous and by how much.Note: no two people will ever work the same number of hours, have the same income, have the same expenses (very few men shell out $50 for a bra for instance), and your planning must accept variances for unexpected sickness, job loss, children, etc.) Life is variable.So build a spreadsheet, put all the expected bills into it such as mortgage, water and sewer, phone, transportation, food, and come up with a high estimate.Subtract your basic expenses from your income. If your income doesn't cover your expenses, don't marry.If your basic expenses are covered by your income, then you need to negotiate how the rest is spent. The only way you will save money is to put all the rest into savings, then negotiate extracts.

Now that you are married, you should first accept the fact that now you will plan your financial future together as a couple and not just from your own perspective.Here are 10 essential to do’s that can help a young couple plan better financially.Discuss Finances jointly: It’s imperative for both partners to be on the same page in money matters. One needs to keep the other informed about insurance policies, mutual funds and other investment products. Make sure to assign your spouse as nominee in all investments.Avoid unnecessary spending: With young couples having ample disposable income these days, one might be tempted to buy the latest phone or that swanky SUV, but do not be impulsive to make such buys. “If you buy things you do not need, soon you will have to sell things you need”.- Warren BuffetSet up an emergency fund: Always be financially prepared for emergencies, and try to have at least 3-6 months expenses set aside as emergency fund. This should include your living expenses and EMIs. It is a good idea to set up a joint account for this purpose where you both can contribute a sum every month.Don’t ignore retirement: Most people start planning for retirement in their late 30s or mid 40s, so it is easy to lose sight of this very important goal when you are young. Target to put away at least 10% of your income to the retirement fund. Preferably invest this amount in equity mutual funds, as you have time on your side now, so you can reap the benefit on compounding in the later years of your life.Get the right health plan: With medical inflation at almost 16%, getting a comprehensive health plan is a must. Purchase a family floater cover of at least 5 Lac for medical needs, over and above the medical insurance provided by your employer. As you are young, the premium also would be lower.Buy sufficient life cover: Buy a life insurance big enough to not only replace your income, but your outstanding loans as well. The cover should be at least 10-12 times your annual income plus debt obligations. Buy online to save on costs.Don’t take debt: This is one of the biggest temptations for young couples: to buy things on credit. Do not take loans to buy the latest phone, the swanky SUV or an exotic vacation. In case you are using a credit card, make sure you don’t roll over the credit and pay the minimum due amount every month, not letting the debt get too high.Get your investments right: Plan your goals like child education , retirement, buying a house, etc and tie such goals with your investments. Choose a good mix of debt and equity products. If you are risk averse when you are young, you might miss the opportunity to create wealth in the longer term, so make sure you allocate a good percentage to equities. To arrive at a figure, equity exposure % in your portfolio can ideally be obtained by subtracting your age from 100.Buying a house: Buy a house only after due diligence and within your budget. If you home loan EMI is more than 40% of your net take home pay, then it is beyond your budget. Also buy the home jointly, so that both partners can avail tax benefits of the home loanStart saving for child: Ideally you should start financially planning for your child right after marriage. Most employers offer maternity benefits as part of their group insurance policy. But it’s good to build a small corpus over a period of one or two years, especially for expenses during post delivery.Well I can add few more points, but it’s imperative that financial planning be done as early as possible to make sure you are ready or at least in a good position to handle any surprises that life has to throw.Hope this helps. :)You can visit my profile and follow me for more answers on personal finance questions:Sarthak TuliTo schedule a consultation session to plan your finances/goals, mail me with your contact no and brief query at:[email protected]

District of Columbia:Income tax is $3,500 plus 8.75% of the excess over $60,000Standard deduction is $12,000 if single or married filing separately; $24,000 if married filing jointly or filing separately on the same return; $18,000 if head of household (higher if age 65+ and/or blind)VirginiaIncome tax is $720 plus 5.75% of the excess over $17,000Standard deduction is $3,000 if single; $6,000 if married filing jointly; $3,000 if married filing separately (higher if age 65+ and/or blind)MarylandState income tax is $90 plus 4.75% of excess over $3,000Montgomery County local income tax is 3.20%Prince George’s County local income tax is 3.20%Other counties varyStandard deduction is $2,250 if single, married filing separately, or dependent taxpayer; $4,500 if married filing jointly, head of household, or qualifying widow(er)Personal exemption is $3,200 per person (except $0 if dependent taxpayer) (higher if age 65+ and/or blind)A two-income married couple often gets an additional $1,200 creditIn addition, Maryland allows about 54 different subtractions from incomeSee each jurisdiction’s web site for important details, qualifications, and exceptions. See a tax professional for advice. The above assumes the person is a U.S. citizen or resident alien with residency in the jurisdiction above. Income taxes vary for nonresident aliens for tax purposes. Property taxes also vary by jurisdiction.https://forms.marylandtaxes.gov/18_forms/Resident_Booklet.pdfhttps://tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2018/760-2018.pdfhttps://tax.virginia.gov/sites/default/files/2016-12/TAXTABLE.pdfhttps://otr.cfo.dc.gov/page/dc-individual-and-fiduciary-income-tax-rateshttps://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2018%20D-40%20BOOK%20WEBSITE%20REV_02.13.2019_ReducedSize.pdfhttps://tax.virginia.gov/sites/default/files/2016-12/TAXTABLE.pdf