Summer’s here and many couples will find themselves tying the knot. Getting married is a joyous milestone, but it also brings new responsibilities and decisions. This is especially true when it comes to your taxes. If you recently tied the knot, you might be surprised at how your tax situation changes.
From choosing the right filing status to updating your W-4s and withholdings, understanding your options can help you maximize savings and avoid common pitfalls. Here’s a comprehensive guide to navigating taxes as a newly married couple, with practical steps you can take to make the transition smooth and financially smart.
Understanding Your New Filing Status
Once you are married, the IRS gives you two main options for filing your federal income taxes: Married Filing Jointly (MFJ) or Married Filing Separately (MFS). Your choice will affect your tax bill, your eligibility for credits and deductions, and how you complete your tax return.
Married Filing Jointly: The Most Common Choice
Most married couples file jointly, and for good reason. Filing jointly means you and your spouse combine your incomes, deductions, and credits on a single tax return. This approach often leads to a lower overall tax bill and opens the door to valuable tax benefits.
Key advantages of filing jointly:
- Higher Standard Deduction: For 2025, the standard deduction for couples filing jointly is $30,000, compared to $15,000 each if filing separately.
- Access to More Tax Credits: Many tax credits are only available or are more generous when you file jointly. These include the Earned Income Tax Credit, the Child and Dependent Care Credit, education credits, and the student loan interest deduction.
- Lower Tax Rates: Joint filers often benefit from wider tax brackets, which can result in a lower effective tax rate for your combined income.
Married Filing Separately: When It Makes Sense
While joint filing is usually the best choice, there are situations where filing separately can be beneficial. When you file separately, each spouse reports their own income, deductions, and credits on separate returns. This status can make sense if:
- One spouse has significant medical expenses. Medical deductions are only available for expenses that exceed 7.5% of adjusted gross income (AGI). Filing separately can make it easier for the spouse with high medical bills and lower income to qualify for this deduction.
- You or your spouse is on an income-driven student loan repayment plan. Filing separately can sometimes reduce monthly payments by excluding your spouse’s income from the calculation.
- You want to keep your finances completely separate, or if there are concerns about liability for your spouse’s tax obligations or penalties.
- One spouse has significant miscellaneous deductions that are limited by AGI, or there are other unique financial situations.
Drawbacks of filing separately:
- Lower Standard Deduction: Each spouse gets only $15,000 for 2025, instead of the $30,000 joint deduction.
- Fewer Tax Breaks: Many valuable credits and deductions are reduced or unavailable, including the Earned Income Tax Credit, most education credits, and the full Child Tax Credit.
- Potentially Higher Tax Bill: Most couples pay more in taxes when filing separately, unless there are specific reasons that offset the loss of credits and deductions.
- Double the Paperwork: Filing separately means preparing and filing two returns, which can be more time-consuming and costly.
How to Decide: Jointly or Separately?
The best way to decide is to run the numbers both ways. Professionals who offer tax services in Clearwater and the surrounding areas can help you compare your total tax liability under each option. In most cases, filing jointly will save you money, but unique circumstances can make separate filing the smarter choice.
Tip: If you are unsure, prepare your taxes both ways before submitting your return. Choose the option that results in the lowest total tax bill and gives you access to the credits and deductions you need.
Updating Your W-4s and Withholdings
Getting married means you should update your tax withholding to reflect your new situation. This helps ensure you have the right amount of tax taken out of your paychecks and helps avoid surprises at tax time.
Steps to Take:
- Update Your W-4 Forms: Both you and your spouse should complete new W-4 forms with your employers. The IRS W-4 form has a section specifically for married couples. Use the IRS Tax Withholding Estimator online to help you fill out the form accurately.
- Coordinate Withholdings: If both spouses work, your combined income may push you into a higher tax bracket. The IRS recommends using the “Two-Earners/Multiple Jobs Worksheet” on the W-4 to calculate the correct withholding.
- Consider Additional Withholding: If you expect to owe more taxes due to higher combined income, consider requesting additional withholding on your W-4 to avoid owing money at tax time.
- Review Withholdings Annually: Life changes like marriage, a new job, or having children can affect your tax situation. Review your withholdings each year to ensure they are still accurate.
Other Key Tax Changes After Marriage
Name and Address Changes
If you change your name after marriage, notify the Social Security Administration so your tax return matches your records. Also update your address with your employer and the IRS if you move.
Combining Finances
Marriage is a good time to review your overall financial picture, including insurance policies, retirement accounts, and estate plans. Consider updating beneficiaries and reviewing your coverage to ensure you and your spouse are protected.
Health Insurance and Other Benefits
If you get health insurance through your employer, you may want to add your spouse to your plan or compare coverage options. Marriage is a qualifying life event that allows you to make changes outside of open enrollment periods.
Action Steps for Newly Married Couples
- Gather all tax documents for both spouses, including W-2s, 1099s, and records of deductions and credits.
- Decide whether to file jointly or separately by calculating your tax bill both ways.
- Update your W-4 forms and review your withholdings to reflect your new marital status.
- Notify the Social Security Administration and IRS of any name or address changes.
- Review your health insurance, retirement accounts, and beneficiary designations.
- Consult a tax professional or use trusted tax software if you have questions or complex financial situations.
Make Your Marriage Work for Your Finances
Getting married is a big life change, and your taxes are just one piece of the puzzle. By understanding your options, updating your paperwork, and planning ahead, you can avoid surprises and make the most of the tax benefits available to married couples. Whether you choose to file jointly or separately, the key is to stay informed, communicate with your spouse, and seek help when needed.
Choosing the right partner for tax services in Jacksonville and beyond is critical. If you have questions about how marriage affects your insurance needs, your taxes, or want to review your coverage as a couple, Star Nsurance + Tax is here to help.
Our team can guide you through important financial decisions, from updating your insurance policies to understanding the tax implications of your new status. Reach out to Star Nsurance + Tax for expert advice and personalized service, so you can start your married life together with confidence and peace of mind.
