Products You May Like
Getting married changes many aspects of your life, including how you file your taxes. Choosing the right tax filing status can significantly impact your tax refund, tax liability, and eligibility for certain tax deductions and credits. This guide will help you understand the tax advantages for married couples, potential married filing separately disadvantages, and how to make the best choice for your situation this tax year.
At a glance:
- Married filing jointly generally offers more tax advantages for married couples, while filing separately often limits deductions and credits.
- Once married, you and your partner should update your W-4s to avoid surprises at tax time.
- TaxAct® can help you determine which filing status will give you the highest tax savings.
Understanding your tax filing status
Your tax filing status determines your tax rate, standard deduction, and eligibility for various tax breaks. As a married couple, you generally have three options depending on your situation:
- Married filing jointly: Most couples choose this option due to its many tax benefits.
- Married filing separately: Filing separate returns may be beneficial in certain situations.
- Head of household: Only available if you lived apart from your spouse for at least six months and meet other IRS qualifying criteria. See our article Head of Household vs. Married Filing Jointly for more information.
Married filing jointly vs. married filing separately
Married filing jointly tax benefits
Filing a joint tax return comes with several advantages, including:
- A higher standard deduction ($29,200 for 2024, compared to $14,600 for single filers).
- Access to valuable tax credits that could save you money, including:
- Generally lower tax rates than filing separately due to how tax brackets work.
- The ability to deduct up to $2,500 in student loan interest.
- More flexibility in claiming certain tax deductions, such as medical expenses, since combined adjusted gross income (AGI) may lower the threshold for deductions.
Married filing separately disadvantages
While some couples may benefit from filing separately, there are several potential downsides to filing separate tax returns:
- Limited access to tax breaks like the EITC, CTC, student loan interest deduction, and certain education credits.
- A higher tax rate in many cases.
- The inability to contribute to a Roth IRA if your taxable income is too high.
- If one spouse itemizes deductions, the other must as well, even if the standard deduction would be more beneficial to one spouse.
- Differences in state tax laws, especially in community property states where income is split between spouses.
For a more in-depth look at the differences between married filing jointly and married filing separately, check out I’m Married, What Filing Status Should I Choose?.
When married filing separately makes sense
Although married filing jointly tax benefits are generally greater for most people, filing your own tax returns separately might be beneficial if:
- One spouse has high out-of-pocket medical expenses and would benefit from itemized deductions, while the other would benefit from the standard deduction.
- One spouse has a significant tax liability (such as unpaid taxes or garnishments).
- Financial or legal separation is a concern.
- A spouse has income-based student loan repayment plans, where lower AGI could reduce payments.
Tax advantages for married couples
Potentially lower tax rates
When both spouses work and one earns significantly less, filing a joint tax return can work out in your favor. The federal tax code imposes higher rates on higher incomes, so combining incomes often results in a lower overall tax rate than if you and your spouse filed separately as single taxpayers.
More deductions and tax benefits
Filing jointly often allows access to higher deduction limits and, therefore, more tax credits. For example, a business loss from one spouse can offset the other’s income, maximizing tax savings. Additionally, joint filers have higher phase-out limits for credits like the American Opportunity Tax Credit and charitable donation deduction.
Unlimited gifting and survivorship benefits
Married couples can gift unlimited amounts to each other without triggering the gift tax (if both are U.S. citizens). Plus, a surviving spouse can inherit an unlimited amount without incurring estate tax.
Higher home sale exclusion
Married couples filing jointly can exclude up to $500,000 in capital gains from the sale of a primary residence, compared to $250,000 for single filers. To qualify, both spouses must meet residency requirements.
Simplified tax filing
Filing a single joint return eliminates the need to prepare and file two separate tax returns, reducing time, effort, and tax preparation costs.
Other tax considerations for married couples
Update your W-4 form
After marriage, you and your spouse may need to adjust your withholding allowances to avoid underpaying or overpaying taxes. Learn more about how to do this in Just Married: How to Fill Out Your W-4.
Report a name change
If you changed your name along with your marital status, you need to report it to the Social Security Administration (SSA) before filing your taxes. The IRS matches the name on your tax return with the one on file with the SSA. A name mismatch could delay your tax refund or the processing of your federal tax return, meaning it could take much longer to get your money if you’re owed a tax refund.
Update your address
If you moved after getting married, update your address with the IRS and the U.S. Postal Service to ensure you receive all your important tax documents.
Social Security and retirement plans
Marriage may impact your Social Security benefits, IRA contributions, and 401(k) planning. If you have concerns about how marriage may affect any of these areas, it might be a good idea to speak with a tax professional for personalized advice.
State tax laws
Some states require couples to use the same filing status on their federal tax return, while others allow different choices. If you live in a community property state, where married couples equally share any income and assets acquired during marriage, filing separately could result in divided income between spouses.
How to file your taxes as a married couple
1. Gather necessary documents.
Before you begin tax filing, collect the following:
- W-2s or 1099s for both spouses
- Social Security numbers
- Records of any deductible expenses (such as medical bills or student loan interest)
- Statements for retirement accounts, capital gains, and other income sources
Tip: Our tax preparation checklist can help you easily track which tax documents you have and still need before you file.
2. Use tax software (like TaxAct!).
Filing taxes as a married couple can feel overwhelming, especially if you’re used to being an individual tax filer. Thankfully, TaxAct simplifies the process by:
- Asking detailed interview questions to determine the most beneficial filing status for your personal situation.
- Suggesting tax deductions and credits to help you get the most out of your tax refund.
- Ensuring compliance with IRS regulations.
- Providing an easy way to file jointly or separately with step-by-step guidance.
Filing taxes for married couples FAQs
Can you file jointly if your spouse has no income?
Yes! Filing jointly can be beneficial even if one spouse has no income, as it allows for a higher standard deduction and better access to tax credits. If you file jointly, you’ll include all your income, deductions, and credits on one joint return.
Which filing status takes out the most taxes?
Married filing separately often results in a higher tax bill for married taxpayers, as it eliminates access to many tax deductions and credits available to joint filers. However, there are limited instances where filing separately could be more beneficial. TaxAct can help you determine which filing status is best for your situation.
Which states allow different filing status than federal?
Some states allow couples to file separately for state taxes even if they filed jointly on their federal tax return. State tax rules can change by the year, so always double-check your state law to verify if you’re eligible to do this. Our tax software can also help you in this area.
Note: If you want to file differently for your federal and state tax returns when using TaxAct, you must create multiple returns in the TaxAct program. For more info and directions on how to do this, check out our support page.
Can you switch between married filing jointly and married filing separately?
Yes, if you choose to file separately and then change your mind, you can switch to married filing jointly by filing an amended return. But once you file separately, you generally cannot amend to married filing jointly after the tax due date (typically April 15).
Do married couples get a bigger tax refund?
It depends on your tax situation. Many couples benefit from a larger refund due to tax credits and deductions only available to joint filers, while others may benefit more from filing separately. Typically, married filing jointly will save you more on taxes, but there are exceptions.
Final tips for newlyweds and long-term married couples
- Always review your tax situation annually to ensure you use the most beneficial filing status.
- Be aware of tax deductions and credits you may qualify for.
- Consult a CPA or tax pro if you have complex financial situations or need personalized tax advice. TaxAct Xpert Assist™ can help you with this too — we know taxes can be confusing, so we have credentialed tax experts on hand who can help answer questions you may have when filing.*
The bottom line
Filing your taxes as a married couple doesn’t have to be complicated. By understanding your filing status options and taking advantage of married tax benefits, you can make the best decision for your financial future. Ready to file your state or federal income tax return? Get started with TaxAct, and let us help you pick the best filing status for you.