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INTRODUCTION
Getting married is a significant life milestone that brings joy, love, and tax changes. As newlyweds, it's essential to understand how marriage impacts your taxes so you can make smart financial decisions. Taxes may not be the most romantic topic and are rarely included in wedding plans, but they play a massive role in your financial journey together. I recently went through this process with my husband. Working through this with my husband brought us closer as a couple and helped relieve the stress associated with taxes.
Ignoring tax planning can lead to unexpected liabilities, missed deductions, and economic stress. The IRS has several resources for helping newlyweds with their taxes, but you have to work together as a couple to take advantage of these tools. By taking a proactive approach, you and your spouse can maximize your tax benefits and build wealth beyond the wedding. Here’s what you need to know about how your taxes change when you get married and how to set yourself up for financial success.
1. PICK A TAX FILING STATUS
One of the most significant tax decisions you’ll make as a newlywed is how to file your taxes. According to the IRS, your filing status matters because it influences the following factors:
- Whether you must file a return
- How much tax you owe
- Credits you can claim
- The type of form you should file
- Your standard deduction amount
- Whether you get a refund
When you get married, you can choose to either Married Filing Jointly (MFJ) or Married Filing Separately (MFS). This decision can feel stressful, but it can help bring you and your partner together because you start talking about money and planning your future. You can do your research to decide which status is right for you and ask for help if you need advice. My husband and I spoke to a tax professional who recommended we use MFJ because we had no significant debts or financial complications. Some tax software or tools let you see your tax outcomes based on if you file MFJ or MFS. Here are some things to consider when picking MFJ vs. MFS for your taxes.
Married Filing Jointly (MFJ)
Married filing jointly is married couples' most common filing status and often provides the best financial benefits.
Pros:
- Lower tax brackets than filing separately can reduce overall tax liability.
- Higher standard deduction for married couples than single filing status (more tax-free income).
- Eligibility for more tax credits, such as the Earned Income Tax Credit, Child Tax Credit, and specific education credits.
- Simplifies tax filing since only one return needs to be prepared.
Cons:
- Both spouses are liable for any taxes due or mistakes on the return.
- You may be responsible for paying your spouse's unpaid taxes.
Married Filing Separately (MFS)
While not as common, this option can be beneficial in certain situations. Filing MFS might be safer if your spouse has large debt, tax liabilities, or troubling financial issues.
Pros:
- Protects you from being responsible for your spouse’s tax liabilities.
- It may be beneficial if one spouse has significant student loans under an income-driven repayment plan.
- If one spouse has substantial medical expenses or miscellaneous deductions, filing separately may help them qualify for more significant deductions.
Cons:
- Some tax credits and deductions are reduced or unavailable.
- Tax rates are generally higher compared to filing jointly.
- Requires both spouses to file separate returns, which can be more complex and expensive.
There are other tax filing options to consider depending on your tax circumstances. Again, do your research together and talk with a tax professional to see which option is best for you.
2. CHECK IF YOUR NEW COMBINED INCOME CHANGES YOUR TAX BRACKET
Marriage affects your tax bracket since you have a combined income. Understanding where your income falls within the tax brackets can help you make smart tax decisions. You may experience the “marriage penalty” or “marriage bonus” depending on your income when you get married.
- Marriage Penalty: If both spouses earn similar high incomes, you may owe more taxes as your combined income puts you in a higher tax bracket.
- Marriage Bonus: If one spouse earns significantly more, filing jointly can reduce your overall tax burden by taking advantage of lower tax brackets.
Knowing where your income lands you with a “marriage penalty” or “marriage bonus” influences the rest of your tax planning. Understanding what can happen to your taxable income when you get married empowers you to take control of your taxes. Also, check if your new combined income impacts how much you can contribute to retirement.
- Roth IRA Contribution Limits: If your combined income is too high, you may no longer qualify for direct Roth IRA contributions.
- 401(k) & IRA Planning: Consider maximizing pre-tax retirement contributions to lower taxable income.
- Spouses can now contribute to a spousal IRA, even if one doesn’t work.
3. UPDATE CHANGES TO PERSONAL INFORMATION
If you changed your last name after marriage, update it with the Social Security Administration (SSA) to prevent tax filing issues. Your tax return must match SSA records, or the IRS could flag your return.
Additional updates to consider:
- If you have moved, change your address with the IRS and your state tax agency.
- Update your driver’s license and other government documents to reflect any name change.
- If you have bank accounts, investment accounts, or credit cards, ensure your name is updated to avoid issues with tax reporting forms (I still found bank accounts I had to change over after a year of marriage!)
4. CHECK YOUR TAX WITHHOLDINGS
Your paycheck withholdings determine how much tax is taken out each pay period. If you don’t adjust them after getting married, you could owe taxes or overpay, which reduces the money you have available throughout the year. For example, you can keep your W2 withholding status “single” and file MFJ for a potential refund. However, less money will be available to you throughout the year. Use the IRS Withholding Calculator to check your numbers. Some things to consider with withholdings:
- Your combined income could push you into a higher tax bracket if both spouses work.
- You can update your W-4 form with your employer to adjust your withholdings (sometimes you can do this online; check with your HR department).
- If you change your withholdings to “married,” ensure you’re still setting aside enough to cover your taxes.
5. GATHER ALL YOUR DOCUMENTS AND CREATE A TAX SYSTEM
As you dive into tax planning with your spouse, gathering all the necessary documents, like W-2s, 1099s, investment statements, and other financial records, is essential. You don't want to miss a critical form and get audited later. Working together on this system promotes healthy teamwork for tax preparation and managing your finances together. For example:
- Create a tax folder or use a digital tool like Quickbooks to store receipts, bank statements, and relevant tax documents like W-2s, 1099s, or contribution receipts.
- Update your records throughout the year, especially for charitable donations and educational expenses, to prepare for tax season.
If you don’t have everything ready by the time tax season arrives, don’t hesitate to ask for an extension. The extra time will give you more time to ensure you're not missing any deductions or tax-saving opportunities. However, if you can, send any owed taxes before the deadline.
6. MAKE SURE YOU GET THE TAX DEDUCTIONS YOU QUALIFY FOR
Now that you are married, you may have tax break benefits that you didn’t have before. While planning your taxes, ensure you take advantage of and keep track of things throughout the year. There are even certain wedding expenses that are tax deductible! Talk with your tax professional or check what deductions you qualify for. Here are some examples of deductions to consider:
Charitable Giving
Donating to qualified charitable organizations can significantly lower your taxable income. Donating to charities is a great way to use your money to help people and causes you care about, and you can lower your taxes with your generosity. To maximize this benefit:
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- Keep records of your donations, including receipts and acknowledgment letters from the charity.
- Track non-cash donations, such as clothing or furniture, by documenting the fair market value of items donated.
- Itemize deductions on your tax return if your total deductions exceed the standard deduction.
Child and Dependent Care Tax Credit
The Child and Dependent Care Tax Credit helps offset the cost of care for children under 13 or other dependents while you work or look for work. You may qualify for expenses for your children, with a credit of the costs depending on your income level.
- Track all expenses: Daycare, after-school programs, and summer camps.
- Keep receipts and the tax ID numbers of care providers to claim the credit.
Tax Breaks with Your Home or Real Estate
Real estate offers several tax advantages that can help reduce taxable income while building wealth. If you own property, here are key tax breaks to keep in mind:
- Mortgage Interest Deduction: If you have a mortgage on your home, you can reduce your taxes by subtracting the interest you pay on the loan.
- Property Tax Deduction: You can also subtract the property taxes you pay on your home to lower your taxes.
- Depreciation: If you rent out a property, you can subtract part of the property’s value every year to lower the income you pay taxes on.
- Selling Your Home (Capital Gains Tax Exemption on Primary Residence): If you sell your home and make a profit, you don’t have to pay taxes on selling your home on up to $250,000 ($500,000 if married) of that profit [as of 2025], as long as you lived in it for two years.
Contributions to Investments and Gifts
Contributing to investment accounts and gifting can offer both tax benefits and help with long-term wealth building:
- 401(k) Contributions: Max out your annual contributions to 401(k) to reduce taxable income.
- 529 College Savings Plans: Contributions to 529 plans are not federally deductible, but many states offer tax deductions. To maximize tax advantages, keep track of contributions and any state-specific benefits. For more on 529 plans, check out the IRS website here.
Small Business Expenses
If you or your spouse owns a business, getting married impacts tax obligations:
- Stay on track with quarterly estimated taxes to avoid penalties. Software like Quickbooks or Freshbooks can help you keep track of your business finances and make filing taxes easier.
- Take advantage of business deductions (home office, vehicle expenses, equipment purchases).
- Consider filing your business as a Limited Liability Corporation (LLC) to make it more tax efficient and separate your business and personal taxes. Products like LegalZoom can help you create an LLC and set up your business for success. However, talk with a tax professional to see if this will suit you and your situation.
Earned Income Tax Credit (EITC)
The EITC is a refundable credit for helping low- to moderate-income working individuals and families. To qualify:
- Your income must fall below certain thresholds and meet requirements related to filing status, number of dependents, and age.
- Keep track of income, including wages and self-employment earnings, and any children you claim as dependents.
- File early, as people with more complicated filing situations often claim this credit.
7. DECIDE HOW TO FILE YOUR TAXES
Depending on your financial situation and needs, you have several tax filing options. Picking how to file your taxes and who to prepare them can seem challenging, but it depends on your tax complexity and needs. Here are some options to consider.
- Tax software: For straightforward taxes like a W2, a house, and some charitable giving, software like TurboTax or H&R Block is great for simple returns and walks you through the process step by step. Also, the IRS website lists options for doing your taxes for free. If you are concerned about identity theft or have been a victim of identity theft, consider getting an identity protection pin (IP PIN) from the IRS.
- Tax professional: Consider using a tax professional if you have many tax questions. Firms like H&R Block can help if you want guidance and personalized advice without the cost of a CPA.
- An accountant: If you have a business, investments, or complex deductions, an accountant can ensure accuracy, help with tax planning, and identify potential savings.
- Certified Public Accountant (CPA): A CPA can provide expert tax planning and ensure accuracy with more specific training than an accountant. CPAs can have different specializations, so interview a couple of candidates to see who best helps support you and your tax needs.
- Tax attorney: For legal tax issues or complex estate planning, a tax attorney can help navigate IRS disputes, audits, or specialized tax strategies. Choosing the right method ensures you file correctly, maximize deductions, and avoid costly mistakes.
Talk with your partner about which option is best for you to use to file your taxes. My husband and I used different options, so we had to discuss our new tax situation and the best resource. For example, you may feel comfortable using free tax software, but your partner has several real estate properties and uses a specialized CPA. Pick a resource that both of you feel comfortable with.
8. PLAN FOR YOUR TAX REFUND OR BILL
Planning for your refund or tax bill ensures that your money works effectively. This may not be as exciting as planning your wedding, but it is a necessary step to prepare for. Depending on your combined income, you may get more money back (marriage bonus) or owe more money (marriage penalty). Looking at your numbers, deductions, and tax planning can make this transition less stressful.
If you’re expecting a tax refund, deciding how to use it wisely is essential. Here are some great ideas:
- Save for the future: Set it aside for a rainy day, like building an emergency fund.
- Invest: Consider contributing to your retirement savings or starting an investment account to grow your money. Acorns is a great place to start investing your change and building wealth for the future. For more about Acorns, check out this review.
- Treat yourself: Use part of it for something fun, like a vacation or new items for your home.
On the other hand, if you think you’ll owe taxes:
- Adjust withholdings: Make sure you have enough taken out of your paycheck to cover what you owe next year.
- Save throughout the year: Set aside money gradually so you won’t be surprised when it’s time to pay taxes.
9. TALK ABOUT TAXES THROUGHOUT THE YEAR
Tax planning isn’t just for tax season; you should discuss it year-round with your spouse. Consider setting up regular money dates and annual financial check-ins to reassess your money progress and any potential changes that could impact your financial situation. Planning taxes throughout the year is essential if you or your spouse have a small business and must prepare for quarterly taxes. Having regular money dates and financial check-ins helps you avoid surprises and allows you to make any necessary adjustments to withholdings or savings throughout the year.
CONCLUSION
While no one enjoys talking about taxes, they are an essential part of your financial journey with your partner. Planning and making smart tax decisions will help you avoid surprises, reduce stress, and build wealth together. Preparing for tax changes will help you unite as a couple and take control of your financial future.
Are you ready to file your taxes with your spouse?
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