How Marriage Impacts Your Tax Return

Getting married is a significant life event, and it can also have a considerable impact on your tax return. Understanding these changes is crucial for financial planning and avoiding surprises come tax season. This guide will walk you through the key considerations when filing jointly or separately after tying the knot.

Quick answer

• Your filing status will change from Single to Married Filing Jointly (MFJ) or Married Filing Separately (MFS).
• MFJ often results in a “marriage bonus” due to tax brackets, but not always.
• MFS can be beneficial if one spouse has significant itemized deductions or high medical expenses.
• You’ll need to consider how your combined income affects eligibility for certain tax credits and deductions.
• Review your W-4 forms with your employer to adjust withholding for your new filing status.
• The deadline for filing your taxes remains the same, but you have options for extensions.

What to check first (before you file or change withholding)

Filing Status

Your marital status on December 31st of the tax year determines your filing status. You can generally choose between Married Filing Jointly (MFJ) or Married Filing Separately (MFS). MFJ combines both spouses’ income, deductions, and credits on one return. MFS files two separate returns.

Income Sources

Identify all income sources for both spouses. This includes wages, salaries, tips, interest, dividends, capital gains, business income, and any other taxable income. Be sure to gather all relevant tax forms, such as W-2s, 1099s, and Schedule K-1s.

Withholding or Estimated Payments

After getting married, you may need to adjust your tax withholding. If you both work, changing your filing status on your W-4 forms with your employers can prevent underpayment or overpayment of taxes throughout the year. If you have significant income not subject to withholding (like self-employment income), you may need to adjust your estimated tax payments.

Deductions and Credits

Marriage can affect your eligibility for certain deductions and credits. Some tax benefits are phased out or eliminated when combined income exceeds certain thresholds. Conversely, some deductions, like the Child and Dependent Care Credit, may be more advantageous when filing jointly. Review which deductions and credits you qualify for as a married couple.

Deadlines and Extensions (General)

The federal tax filing deadline is typically April 15th each year. If this date falls on a weekend or holiday, the deadline shifts to the next business day. You can request an automatic six-month extension to file, but this does not extend the time to pay any taxes owed.

Step-by-step (simple workflow)

1. Determine your marital status on December 31st.

• What “good” looks like: You clearly know if you were married by the end of the year.
• Common mistake: Forgetting that the IRS uses December 31st as the determining date, not your wedding date if it’s later in the year.
• How to avoid: Note your wedding date and confirm it falls on or before December 31st for the tax year in question.

2. Choose your filing status: MFJ or MFS.

• What “good” looks like: You’ve compared both options to see which results in a lower tax liability or better tax benefits.
• Common mistake: Automatically choosing MFJ without comparing it to MFS, which can sometimes lead to a higher tax bill.
• How to avoid: Use tax software or consult a tax professional to run the numbers for both MFJ and MFS.

3. Gather all income documents for both spouses.

• What “good” looks like: You have all W-2s, 1099s, and other income statements for both individuals.
• Common mistake: Missing income from a side hustle or freelance work, leading to an amended return.
• How to avoid: Create a checklist of all income types and ensure you have corresponding documentation for each.

4. Compile all deductible expenses and tax credits.

• What “good” looks like: You have organized records for potential itemized deductions (mortgage interest, state and local taxes up to the limit, charitable contributions, etc.) and credits (child tax credit, education credits, etc.).
• Common mistake: Forgetting about expenses that can be deducted or credits you’re eligible for, leaving money on the table.
• How to avoid: Review common deductions and credits and gather receipts or statements for any qualifying expenses.

5. Update your W-4 forms with employers.

• What “good” looks like: Your withholding accurately reflects your new tax situation, aiming for neither a large refund nor a large tax bill.
• Common mistake: Not updating W-4s, leading to underpayment and potential penalties or overpayment and a large, interest-free loan to the government.
• How to avoid: Use the IRS Tax Withholding Estimator or your payroll provider’s tools to calculate the correct withholding.

6. If applicable, adjust estimated tax payments.

• What “good” looks like: You’re making timely estimated tax payments that cover income not subject to withholding.
• Common mistake: Continuing with old estimated payment amounts without considering combined income.
• How to avoid: Re-evaluate your estimated tax liability quarterly based on your updated income and deductions.

7. Complete your tax return.

• What “good” looks like: You’ve accurately reported all income, deductions, and credits using your chosen filing status.
• Common mistake: Errors in data entry or misinterpreting tax law.
• How to avoid: Double-check all figures, use tax software with built-in error checks, or hire a tax professional.

8. Review and sign the return.

• What “good” looks like: Both spouses have reviewed the return for accuracy and signed it.
• Common mistake: One spouse signing without reviewing, or forgetting to sign altogether.
• How to avoid: Ensure both individuals understand the information and sign electronically or physically.

9. File your return by the deadline.

• What “good” looks like: Your return is submitted to the IRS on or before the due date.
• Common mistake: Missing the filing deadline without filing for an extension.
• How to avoid: Mark the deadline on your calendar and file early or file for an extension if needed.

10. Pay any tax due or prepare for your refund.

• What “good” looks like: You’ve either paid any taxes owed or are awaiting your refund.
• Common mistake: Not having funds available to pay taxes owed, leading to penalties and interest.
• How to avoid: If you owe, set aside funds throughout the year or be prepared to pay by the deadline.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not comparing MFJ vs. MFS	Potentially paying more in taxes than necessary.	Use tax software or a tax professional to calculate tax liability under both filing statuses and choose the most beneficial one.
Incorrectly calculating withholding	Underpayment penalties, or a large tax bill, or overpayment (interest-free loan to IRS).	Use the IRS Tax Withholding Estimator or your payroll system’s tools to adjust W-4s.
Forgetting to report all income	Understated tax liability, leading to penalties and interest.	File an amended tax return (Form 1040-X) to report the missing income and pay any additional tax owed.
Missing out on eligible deductions	Higher tax liability than necessary.	Review eligible deductions for married couples and gather supporting documentation. You can amend past returns for up to three years if you missed deductions.
Missing out on eligible tax credits	Higher tax liability than necessary.	Research tax credits available to married couples and ensure you meet the eligibility requirements. Amend past returns if you missed credits.
Not updating estimated tax payments	Underpayment penalties if you have significant income not subject to withholding.	Regularly review your income and adjust estimated tax payments quarterly with Form 1040-ES.
Incorrectly reporting dependents	Disallowed credits or deductions, and potential audits.	Ensure you meet the IRS criteria for claiming dependents and have their correct Social Security numbers.
Filing late without an extension	Failure-to-file penalties and interest on any tax owed.	File an extension (Form 4868) by the original deadline if you cannot file on time. Remember to pay any estimated tax due by the original deadline.
Not signing the tax return	The IRS will consider the return unfiled.	Ensure both spouses sign and date the return before submitting it.
Forgetting to account for spouse’s debt	Can impact joint tax liability or eligibility for certain tax benefits.	Be aware of any significant debts your spouse carries, especially if considering MFS or other financial planning decisions.

Decision rules (simple if/then)

• If your combined income is high and one spouse has significantly more itemized deductions than the standard deduction, then consider Married Filing Separately (MFS) because it allows each spouse to use their own deductions.
• If one spouse has substantial medical expenses exceeding 7.5% of their Adjusted Gross Income (AGI), then consider MFS because it can allow that spouse to deduct those expenses if their AGI is lower on a separate return.
• If your combined income is moderate and you don’t have significant individual deductions, then file Married Filing Jointly (MFJ) because the tax brackets for MFJ are often wider, leading to a lower tax bill (the “marriage bonus”).
• If you are married, but one spouse has a much lower income, then filing MFJ is usually more beneficial due to the “marriage bonus” and the ability to use the higher-earning spouse’s income to claim more credits.
• If you are considering MFS, then calculate the tax liability for both MFJ and MFS because it’s not always obvious which is better, and one choice might be significantly more advantageous.
• If you both work and have roughly equal incomes, then be cautious with W-4 adjustments, as having both spouses claim “Married” status with the highest withholding might lead to overpayment.
• If you have children, then filing MFJ is usually more beneficial for maximizing child-related tax credits, such as the Child Tax Credit.
• If you are unsure about the best filing status, then consult a tax professional because they can analyze your specific financial situation.
• If your combined income is too high to qualify for certain tax benefits, then investigate if filing MFS could allow one spouse to qualify for those benefits on their separate return.
• If you plan to claim the Earned Income Tax Credit (EITC), then be aware that rules for married couples are specific and filing MFJ is generally required, with income limitations applying.
• If you have significant student loan interest, then filing MFJ or MFS might affect your ability to deduct it, so compare the outcomes.

FAQ

Q1: When should I update my W-4 after getting married?

You should update your W-4 forms with your employer as soon as possible after getting married to ensure your withholding accurately reflects your new tax situation. This helps prevent underpayment or overpayment of taxes throughout the year.

Q2: What is the “marriage bonus” or “marriage penalty”?

The “marriage bonus” occurs when a married couple filing jointly pays less tax than they would have if they had remained single and filed separately. Conversely, a “marriage penalty” occurs when a married couple filing jointly pays more tax than they would have if they had remained single. This often depends on the income levels of each spouse.

Q3: Can I still claim my spouse as a dependent?

No, you cannot claim your spouse as a dependent. Spouses are considered taxpayers in their own right, and the filing status of Married Filing Jointly or Married Filing Separately accounts for both individuals.

Q4: What if my spouse and I have very different incomes?

If your incomes are very different, filing jointly often results in a marriage bonus because the higher earner’s income can help the lower earner utilize tax brackets more effectively and potentially claim more credits. However, it’s always wise to compare with Married Filing Separately.

Q5: Are there any tax benefits to getting married?

Yes, beyond the potential tax savings from filing jointly, marriage can offer benefits such as increased eligibility for certain tax credits, the ability to transfer assets between spouses tax-free, and the possibility of splitting income for tax purposes in specific situations.

Q6: What is the difference between Married Filing Jointly and Married Filing Separately?

Married Filing Jointly (MFJ) combines both spouses’ income, deductions, and credits onto a single tax return. Married Filing Separately (MFS) requires each spouse to file their own individual tax return, reporting only their own income, deductions, and credits.

Q7: If I choose Married Filing Separately, can my spouse still claim the Child Tax Credit?

Eligibility for tax credits like the Child Tax Credit can depend on your filing status. While it’s generally easier to claim when filing jointly, there are specific rules for MFS filers, and it may depend on which spouse has custody of the child.

Q8: What happens if we get married late in the year?

Your marital status on December 31st determines your filing status for the entire tax year. So, if you marry on December 30th, you can file as Married Filing Jointly or Separately for that tax year.

What this page does NOT cover (and where to go next)

• Specific tax implications for same-sex married couples: While federal law generally treats all legally married couples the same, state laws can vary.
• Detailed analysis of state income tax laws: This guide focuses on federal taxes; state tax rules may differ significantly.
• Advanced tax planning strategies for high-net-worth individuals: Complex scenarios involving trusts, investments, and business ownership require specialized advice.
• Estate planning and inheritance taxes: These topics are distinct from annual income tax filings.

Where to go next:

• Consult with a qualified tax professional or Certified Public Accountant (CPA).
• Explore resources from the Internal Revenue Service (IRS) website.
• Research state-specific tax regulations.
• Consider financial planning services for comprehensive advice.