Socking away investments that generate income in tax- deferred individual retirement accounts as well as harvesting losses throughout the year to offset gains are strategies for married couples, said Kent Kramer, chief investment officer of the investment advisory firm Foster Group.
Timing Deductions
Timing of deductions also will be more of a focus this year, said Susan Bruno, an accountant and financial planner at Beacon Wealth Consulting LLC.
“If you have unusually high income one year, that’s probably not the year you want to make your normal contributions and deductions,” Bruno said.
The option for a married couple to file separately rather than jointly is still generally more expensive even with the higher rates, said Marcum’s Perry. And while couples face a marriage penalty, advisers aren’t seriously recommending divorce for tax reasons.
Some tax-conscious high earners who haven’t yet married may see staying single as a way to avoid the penalty. Steuerle, though, says there are other financial advantages to marriage such as the way Social Security benefits are structured.
“People who are less concerned about the formal marriage vow have more ability” to avoid the penalty, he said.