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Married Taxpayer

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Married Taxpayer
A person who is legally married on the final day of a tax year (which is usually the calendar year). In the United States, a married taxpayer has the option of being married filing separately or married filing jointly, depending on which option offers the most tax advantages.


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Section 121 generally permits married taxpayers to exclude up to $500,000 of gain from the sale or exchange of property if, during the five-year period ending on the date of the sale or exchange, the property has been owned and used by the taxpayer as the taxpayer's principal residence for a period of, or periods totaling, at least two years.
Most married taxpayers decide to file a joint return because of the tax benefits that it offers.
For single filers or married taxpayers filing separately, those reporting a MAGI of less than $105,000 can contribute up to the limit, but between $105,000 and $120,000 that contribution is reduced.
 
 
 
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