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Weddings are becoming a big thing again. The article 'The Truth About the 2022 Wedding Boom' from lifestyle website The Knot states that 2.6 million couples were set to have their big day this year alone. With many making up for postponed plans and a prolong period without nuptials, the built-up excitement has caused couples to make more extravagant preparations. CNN Business reports that the 2022 wedding comeback is expected to match the average 2021 wedding budget of $34,000. If you’re among those getting married soon, then you've undoubtedly been planning it for a while. But looking for a dress, booking venues, and finalizing guest lists can all add up to your total expenses. Having solid tax strategies can help you cope with these costs. Maryville University explains the best tax planning strategies can minimize tax bills and penalties. They also provide more opportunities for you to find tax deductions and save more money. Below are a few wedding-related tax breaks that can help you build a tax planning strategy that does just that.
The Bridal Gown
If you don’t see yourself wearing your gown again, consider donating it for a tax deduction. Prof. Carol Macphail of Robert Morris University suggests reducing tax liability by donating to charities. As long as your chosen organization is a public charity or nonprofit — like Brides for a Cause and Brides Against Breast Cancer — you can claim as much as a 60% deduction off taxes.
And if you’re already considering donating your gown, why not choose one that can be styled in many ways? We exemplify such in our article “Wedding Dresses With Detachable Sleeves (Two Looks In One!)”, which features two-way gowns that can be worn with or without sleeves. This way, the bride who receives your gown can easily style it to suit their preferences. By donating your gown, you can help brides feel special while cutting down on wedding costs.
Church Ceremonial Fees
Your venue is one of the most important aspects of your wedding. In ‘The Couple’s Guide to Balancing a Wedding Budget’, we write that you shouldn’t sacrifice anything that would keep you from making your dream wedding a reality. Instead, you should find where you can cut costs. And thankfully, churches can formally acknowledge your ceremonial fees as a donation with a written document. As a “donation,” it will then be deducted from your wedding taxes. If this isn’t feasible, another option is actually to donate an amount bigger than your ceremonial fees. Some churches would accept this as both a “payment” for their ceremonial services and as a charitable gift. Doing so also allows you to claim a tax deduction as high as 100% of the amount you donated. Whichever you choose, setting up ceremonial fees as tax deductibles can significantly lower your wedding costs.
Public Property Venues
Conducting your wedding at a property owned by a non-religious, nonprofit entity can also score you a tax deduction. The fees for holding weddings at public sites such as museums, national parks, or historical spaces can be considered tax-deductible donations. Just ensure that the venue complies with the Internal Revenue Service's exemption requirements for 501(c)(3) organizations. These stipulate that the venue must operate for nonprofit purposes like religion, education, or science. So long as no private entity profits from the site, your wedding taxes will benefit from tax-deductible venue fees.
Wedding Donation Registry
Your friends and loved ones can also help you obtain tax breaks. This is possible by setting up a wedding charity registry on platforms like The Knot, Joy, and Zola. These platforms have tools that allow you to choose which charities will benefit from your donations. In turn, your guests can use such sites to donate in just a few clicks. These contributions will all be processed under your name, adding to your tax deductions. Your wedding day will be one of the most pivotal moments in your life. Our post ‘Planning a Stress-Free Wedding’ points out that it’s easy to be overwhelmed when planning for your big day. With these tax breaks, you can make the process much more rewarding by maximizing your budget to make every memorable detail of your wedding worth it.
Article written by Renae Jane