Nearly 2.1 million couples said "I do" in 2023, according to the Wedding Report, a data-gathering trade group.1 If you're one of the newlyweds, you might be wondering what that means for your taxes.
For starters, if you changed your name, you'll need to notify the Social Security Administration ASAP so the IRS can match your new name with your Social Security number. If you changed your address, make sure the IRS knows so they can get a possible tax refund check to the right place or reach out if they need to contact you.
Next, a more complicated move: You'll need to decide whether to file your tax return as married filing jointly or married filing separately. Here's how to come to a harmonious decision.
Options for married people when filing taxes
How you decide to file impacts:
- What credits you'll be eligible for
- How much of your income isn't subject to tax if you choose not to itemize deductions (aka the standard deduction)
- Your effective tax rate (what percentage of your income you'll owe the government)
- Your ability to deduct traditional IRA contributions (also depends on your and/or your spouse's coverage by an employer-sponsored retirement plan at work)
- Your ability to contribute to some accounts such as Roth IRAs
There are generally 5 filing types:
- Single
- Married filing jointly
- Married filing separately
- Head of household
- Qualifying surviving spouse (widow/widower with dependent child)
Because a person may qualify for multiple filing statuses, you could use the IRS's filing status tool to see your options. When you're married, you have only 2 options. You can file either as married filing jointly or married filing separately, starting in the tax year during which you got hitched (with a filing deadline in April the next calendar year). After getting married, you're not able to file as single again unless you are legally separated or divorced, or until the tax year following a spouse's death.
So what does each status mean when filing taxes? Here are the differences.
Single filer, aka how you likely filed before getting married
A single filer is typically unmarried and doesn't have dependents, so they don't qualify for other filing statuses, such as head of household or qualifying surviving spouse. You submit your tax documents alone and qualify for single-filer tax brackets, which typically have lower income thresholds than those for married people—because they're based on 1 person's income, not 2 people's. You can no longer file this way once you're married.
Married filing jointly
Married filing jointly means that you'll combine your income, deductions, and credits with your spouse's, all on 1 tax return with the same tax rate. When you file this way, both of you are responsible for any taxes, interest, or penalties due to the IRS. If you're owed a refund, you can choose to receive multiple checks, direct deposits to multiple accounts, or a combination.
Married filing separately
Married filing separately means each of you files your own tax return for a total of 2 returns. If 1 of you files this way, the other has to do the same. You're each taxed on your individual income, and you can only take deductions or credits that you qualify for individually. Still, you have to agree on whether you're both itemizing deductions (reporting individual deductions, such as mortgage interest and charitable donations to reduce taxable income) or both taking the standard deduction (deducting a preset dollar amount to reduce your taxable income). You can't mix and match.
Head of household
This filing status might be for you if you're unmarried, have a qualifying dependent, such as a child or sibling or parent you financially support, and pay more than half of your household's expenses (such as rent, groceries, and utility bills). Filing this way may net you a higher standard deduction and a lower effective tax rate than those filing as single.
Is it better to file jointly or separately?
Picking the right filing status for your situation is important because it could potentially save you money. Here's some info that could help you choose.
Those who file jointly typically receive more tax benefits than those who are married filing separately. For instance:
- Joint filers are more likely to be eligible for credits such as the Child and Dependent Care Credit.
- Joint filers generally receive higher income thresholds for certain tax breaks, such as the amount of deductible contributions they can make to an IRA.
- Those who file separately can't claim education credits such as the American Opportunity Tax Credit and the Lifetime Learning Credit—and they can't deduct student loan interest either.
- Those filing jointly are also eligible for a larger standard deduction amount, which when combined with the above credits could equal a better tax benefit. In 2024, married filing separately taxpayers receive a standard deduction of $14,600 each compared to the $29,200 those who filed jointly can get.2
But there are some situations where married filing separately may make more sense:
- If you're on a student loan income-driven repayment plan, filing separately could reduce your bill since it would be based on your income alone, instead of your spouse's income and yours combined.
- If you have a large amount of out-of-pocket medical expenses, it may be easier to reach the 7.5% threshold of your adjusted gross income to qualify for medical deductions if you only claim 1 income.
- You might also choose to file separately if you're in the process of getting divorced or separated and want to avoid any shared liabilities.
Still not sure which is right for you?
It might make sense to consult a tax professional or run each scenario yourself to see what the outcome would be. There are a lot of factors that could impact your taxes (such as whether you own a home and can deduct mortgage interest), so deciding how to file isn't one-size-fits-all for couples. If you decide to run the numbers for the 2024 tax year, take a look at your marginal tax rates for your adjusted gross income in both scenarios.
| Tax rate | Married couples filing jointly | Married couples filing separately |
|---|---|---|
| 10% | $23,200 or less | $11,600 or less |
| 12% | $23,201 to $94,300 | $11,601 to $47,150 |
| 22% | $89,451 to $201,050 | $47,151 to $100,525 |
| 24% | $201,051 to $383,900 | $100,526 to $191,950 |
| 32% | $383,901 to $487,450 | $191,951 to $243,725 |
| 35% | $487,451 to $731,200 | $243,726 to $365,600 |
| 37% | $731,201 or more | $365,601 or more |
Extra credit: Check your withholding
If you haven't already, you and your spouse might need to adjust your withholdings (hint: the amount of federal and potentially state and local income tax that comes out of each paycheck). Doing so may ensure that you're not giving the government too much (and getting a hefty tax refund later) or too little (and owing taxes or penalties come tax time). To figure out your withholding, use the IRS Tax Withholding Estimator which asks about your income, credits, and deductions. Then, submit a new W-4 form to your employer if necessary.