"I Do" and Taxes Too: What Marriage Means for Your Tax Situation

Marriage is a beautiful milestone, but it also comes with important financial changes. Understanding how getting married affects your taxes can help you take advantage of new benefits and avoid common pitfalls. Here's everything you need to know about tying the knot and your taxes.

1. New Filing Status Options

Once you’re married, your filing status changes. You now have two options:

  • Married Filing Jointly (MFJ): This is the most common choice for married couples and often provides the biggest tax savings. You’ll enjoy:

    • Higher income thresholds for tax brackets.

    • Increased eligibility for tax credits and deductions.

  • Married Filing Separately (MFS): While less common, this option may benefit couples in specific circumstances, such as:

    • One spouse has significant medical expenses.

    • Managing separate finances for other legal or financial reasons.

💡 Pro Tip: A tax professional can help you compare both options to decide which is best for you.

2. Tax Brackets: The Marriage Bonus (or Penalty)

Marriage often changes how your income fits into tax brackets. Here’s how it works:

  • Marriage Bonus: If one spouse earns significantly less than the other, filing jointly often lowers your combined tax rate.

  • Marriage Penalty: If both spouses have high incomes, you may move into a higher tax bracket.

Understanding these dynamics can help you plan ahead and reduce your tax bill.

3. Updating Withholdings

Once married, you’ll want to update your W-4 form with your employer to reflect your new marital status. This ensures the right amount of taxes are withheld from your paycheck.

  • Combine your incomes and deductions to avoid under- or over-withholding.

  • Use the IRS’s Withholding Calculator to determine how much should be withheld.

4. Tax Benefits for Married Couples

Marriage comes with several financial perks, including:

  • Higher Deduction Limits: The standard deduction for married couples filing jointly is nearly double that of single filers.

  • IRA Contributions: If one spouse doesn’t work, the other can make contributions to a spousal IRA to maximize retirement savings.

  • Tax Credits: Certain tax credits, like the Earned Income Tax Credit (EITC), are more accessible with a combined income.

5. Name and Address Changes

Did you change your name after marriage? Be sure to update the following:

  • Social Security Administration (SSA): Ensure your name matches what’s on file with the IRS.

  • Tax Documents: Update your address with your employer and the IRS if you moved after marriage. Use IRS Form 8822 to report your new address.

6. Filing Deadlines and Considerations

Here’s what you need to know about deadlines:

  • If you’re married by December 31, you’ll be considered married for the entire tax year.

  • File jointly or separately by April 15 to avoid penalties.

Common Questions About Taxes and Marriage

1. Can we claim our wedding expenses as deductions?
Unfortunately, most wedding expenses aren’t deductible. However, if you donate leftover food, flowers, or other items to a charity, you may be eligible for a deduction.

2. Does marriage automatically save us money on taxes?
Not always. It depends on your combined income and other financial factors. A tax professional can analyze your situation to optimize your savings.

3. What happens if we didn’t adjust our withholdings after marriage?
You could face underpayment penalties or a surprise tax bill. It’s a good idea to update your W-4 as soon as possible.

Let NotchBooks Help You Start Your Married Life Right

Marriage is the beginning of a new chapter—one that deserves careful financial planning. At NotchBooks, we’ll help you:

  • Navigate your new filing options.

  • Maximize your tax benefits.

  • Ensure you’re set up for long-term financial success.

Let’s Make Tax Planning Easy

Start your journey together with financial confidence. Contact us today to get personalized guidance on how marriage impacts your taxes.