Love, marriage and your first joint tax return -- Page 2

Filing separately also could make sense if one of you has had a ton of medical bills. Since you can only deduct expenses that exceed 7.5 percent of your gross adjusted income, a couple's larger combined income could make it tougher to clear this deduction hurdle. But if you file separately, the spouse with the doctor bills might be able to claim the deductions that otherwise would be lost.

The same is true if one spouse has casualty or theft losses that exceed 10 percent of his or her income, says Doug Stives, CPA and partner in The Curchin Group.

Tax breaks for two
Keep in mind, however, that marriage shines a new light on deductions and credits you might have been individually claiming for years.

A higher household income, or splitting the same income between two people, might make you eligible for some breaks you've never before considered or knock you out of the running for others. And some deductions and credits are not available to married taxpayers who file separate returns. So be sure to read the IRS instructions carefully or ask your accountant for guidance.

Here are some tax breaks that couples commonly encounter:

• Mortgage interest: Did you buy a home? Be sure to claim the interest from your mortgage, as well as any points you paid at closing. The downside is you must itemize, and if your total itemized deductions don't exceed the joint standard amount ($9,500 in 2003), you really haven't gained anything, says Stives.
• Moving expenses: Unfortunately, this tax break does not apply to the cost of the groom moving into the bride's apartment after the wedding ceremony. But if you began your married life in a new city because your spouse took a better job and you and paid for the move yourself, you might be able to deduct your moving expenses.
• Child-related tax breaks: If love and marriage were followed by the baby carriage, you get a $3,050 dependency exemption, plus a $1,000 child tax credit.

Many couples also bring student debt to their union. You can deduct up to $2,500 in interest on student loans on your return, says Stives, and you don't have to itemize. Just remember: It's up to $2,500 per return, not per spouse. And you don't try to claim more by filing separately; this is one of those tax breaks that married taxpayers can use only when they file a joint a return.

Post-tax planning
Once you're through with your return, don't just file and forget it until next year.

"Use your return as a blueprint for thinking through your finances for the coming year," says Chris Farrell, host of "Right on the Money," a nationally syndicated personal finance show. "It's a starting place for additional conversations about where you want to be investing or saving your money."

Take, for example, the debts that each of you brought into the marriage. Filing a tax return provides an opportunity to discuss how you want to handle them, notes Farrell. "You probably talked it over before you got married. But things have changed now."

Tax time also offers a couple a chance to examine how they can put the most money into tax-deductible qualified plans, says Ruth Hayden, a financial consultant and president of Ruth L. Hayden and Associates. "Not only do you subtract it dollar for dollar off your income, but down the road it's your money."

As for the tax-filing process itself, if completing this first return together didn't go smoothly, don't be afraid to ask for professional help. "There's nothing wrong with outsourcing things that cause stress," says Farrell.

And be prepared to give your spouse the benefit of the doubt. When you do your taxes together for the first time, it's possible you'll discover that he or she did something that cost the two of you a few dollars, such as not withholding the appropriate amount or failing to maximize a deduction opportunity.

"Accept the fact that that's what it is at this point," says Picker. "Look to fix it going forward, and not look at who's to blame."

Dana Dratch is a freelance writer based in Atlanta.