Tying the knot changes more than just your last name and mailing address—it also changes how you file your taxes. Many newlyweds are surprised to learn that if you're married by December 31, the IRS considers you married for the entire tax year, regardless of whether you exchanged vows in January or on New Year's Eve.
Filing Options: Married Filing Jointly or Separately
As a married couple, your federal tax return must be filed under one of two statuses:
1. Married Filing Jointly
This is the most common and often most beneficial status for married couples. Filing jointly typically offers:
- A higher standard deduction
- Access to more tax credits and deductions (such as the Earned Income Tax Credit, Child Tax Credit, and education-related credits)
- Lower overall tax rates in many cases
However, both spouses are jointly responsible for the return's accuracy and any tax owed. So, it's important to be transparent about each other’s income, debts, and financial activity.
2. Married Filing Separately
This option may make sense if:
- One spouse has significant medical expenses, miscellaneous deductions, or liabilities.
- You want to keep finances entirely separate.
- You’re in the process of divorce or legal separation.
Be aware, though: Filing separately usually results in a higher tax bill and disqualifies you from several credits and deductions.
Other Considerations for Newlyweds
✅ Update Your Withholding
After getting married, you may want to adjust your W-4 form with your employer to ensure the correct amount of tax is withheld from your paycheck. Use the IRS Tax Withholding Estimator to avoid a surprise bill or refund next year.
✅ Name and Address Changes
If one of you changed your name, make sure it’s updated with the Social Security Administration before filing. Mismatched names can delay your return. Also, update your address with the IRS (Form 8822) and the U.S. Postal Service if you moved.
✅ Coordinate Financial Documents
When filing jointly, you’ll need income documents (like W-2s and 1099s) for both spouses. It’s wise to start gathering everything early to avoid delays or missed deductions.
Marriage is a major life milestone—and a financial partnership. Understanding your tax filing options and taking a few simple steps now can help you start your life together on the right financial foot.
