The Tax Impacts of Getting Married

Last updated 3 months ago. Our resources are updated regularly but please keep in mind that links, programs, policies, and contact information do change.

This guide walks newlyweds and those planning marriage through the essential federal tax changes and considerations that come from this life event.

Your Filing Status: Choosing Between Jointly or Separately

The Big Change: New Filing Status Options

Upon marriage, individuals can no longer file their federal income tax return using the ‘Single’ status. Instead, married couples primarily choose between two filing statuses: Married Filing Jointly (MFJ) or Married Filing Separately (MFS). This choice is significant because the filing status affects the amount of tax owed, the standard deduction amount available, eligibility for various tax credits, and even the requirement to file a tax return at all.

The determination of marital status for tax filing generally depends on whether a couple is married on December 31st of the tax year. The Internal Revenue Service (IRS) considers individuals married for the entire year if they are married on that date. This includes couples who are living apart but are not legally separated under a divorce decree or a separate maintenance decree by the end of the year. State law dictates whether individuals are legally separated or divorced. Couples in common-law marriages recognized by the state where the marriage began are also eligible to use married filing statuses.

Married Filing Jointly (MFJ): The Common Choice

Definition & Requirements: The Married Filing Jointly (MFJ) status allows a married couple to combine their income, deductions, and credits onto a single tax return. To use this status, both spouses must agree to file jointly, and both typically must sign the return. A joint return can be filed even if one spouse had no income or deductions during the year. This status is available to couples who are married and living together, as well as those married and living apart but not legally separated. Furthermore, if a spouse passed away during the tax year, the surviving spouse can usually file a joint return for that year, provided they did not remarry before the end of the year.

Benefits: Filing jointly is the most common choice for married couples, largely because it often results in tax savings. The MFJ status generally offers the lowest tax rates and the highest standard deduction amounts compared to other filing statuses available to married individuals. Many tax benefits, such as certain tax credits and deductions, have higher income thresholds for MFJ filers, meaning couples can earn more combined income and still qualify. Examples include education credits (American Opportunity Tax Credit and Lifetime Learning Credit), the Child and Dependent Care Credit, the Earned Income Tax Credit (EITC), and the Adoption Credit or exclusion for adoption expenses. Additionally, filing a single return simplifies the process and can be less expensive if using a tax professional compared to filing two separate returns. The structure favoring MFJ, with wider lower tax brackets and doubled standard deductions compared to single filers, reflects a system designed to simplify administration and often align with viewing the married couple as a single economic unit, offering potential tax advantages.

Married Filing Separately (MFS): When It Might Make Sense

Definition & Requirements: Married Filing Separately (MFS) is the status used by married individuals who choose not to file a joint return, or who cannot agree to do so. When filing separately, each spouse reports their own income, deductions, and credits on their individual tax return. The tax return must include the other spouse’s name and Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).

Potential Reasons for Choosing MFS: While MFJ is usually more beneficial, there are specific situations where MFS might be considered:

• Lowering Tax Liability (Rare): In certain uncommon scenarios, filing separately might result in a lower total tax liability for the couple. A primary example involves deductions subject to an Adjusted Gross Income (AGI) threshold, such as medical expenses. If one spouse incurred significant medical expenses, their lower individual AGI on an MFS return might allow them to deduct more of those expenses (which are only deductible above 7.5% of AGI) than would be possible using the higher combined AGI on a joint return.
• Separating Liability: Some couples choose MFS because they want to be responsible only for their own tax obligations and not for any potential errors, omissions, or tax debts attributable to their spouse.
• Protecting Refunds: If one spouse owes past-due debts—such as federal or state taxes, child support, or defaulted student loans—filing jointly can result in the couple’s tax refund being used (offset) to pay that debt. Filing separately prevents the non-debtor spouse’s portion of any potential refund from being offset. However, it’s important to note that Form 8379, Injured Spouse Allocation, can often be filed with a joint return to protect the injured spouse’s share of the refund from being applied to the other spouse’s debt, potentially allowing the couple to still benefit from filing jointly.

The Downsides and Restrictions of MFS

Choosing to file separately often comes with significant tax disadvantages:

• Generally Higher Tax: For most couples, filing separately results in a higher combined tax liability compared to filing jointly. The tax rates applied under the MFS status are typically less favorable (often resulting in higher tax) than those under MFJ.
• Lower Standard Deduction: The standard deduction amount for MFS is exactly half the amount available for MFJ filers. For 2024, the MFS standard deduction is $14,600, compared to $29,200 for MFJ.
• Itemization Rule: A critical restriction applies: if one spouse chooses to itemize deductions (listing expenses like medical costs, certain taxes, home mortgage interest, etc.) rather than taking the standard deduction, the other spouse must also itemize, even if the standard deduction would result in lower taxes for them. This rule prevents couples from strategically allocating deductions between two separate returns in a way that circumvents the benefits intended for joint filing.
• Lost Credits & Deductions: Filing separately makes taxpayers ineligible for several valuable tax credits and deductions. These typically include:
  • Earned Income Tax Credit (EITC)
  • Child and Dependent Care Credit (in most situations)
  • American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for education expenses
  • Student Loan Interest Deduction
  • Adoption Credit or Exclusion for adoption expenses
• SALT Deduction Limit: The deduction for State and Local Taxes (SALT) is capped at $10,000 per return for most filers, but this limit is halved to $5,000 for those using the MFS status.
• Community Property States: Special, often complex, rules govern how income and deductions must be allocated between spouses filing separately if they live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin). Taxpayers in these states should consult IRS Publication 555, Community Property for guidance.

The existence of MFS acknowledges the need for flexibility, particularly for liability separation. However, the stringent rules and loss of benefits attached to it highlight a balance struck in the tax code. These restrictions prevent couples from using separate returns to gain unintended tax advantages while preserving MFS as an option for specific non-tax reasons, albeit usually at a higher tax cost.

Joint and Several Liability: A Key Consideration for MFJ

A crucial aspect of filing a joint return is the concept of “joint and several liability.” This legal term means that each spouse is fully responsible for the accuracy of the joint return and for paying the entire tax liability, including any interest and penalties, even if the income, errors, or improper deductions/credits were attributable to only one spouse. This responsibility holds true even if the couple later divorces, and a divorce decree assigning tax liability to one former spouse is not binding on the IRS. The IRS can collect the full amount due from either individual named on the joint return. This underscores the importance of mutual trust and financial transparency when deciding to file jointly. The government’s stance ensures efficient tax collection by treating the couple as a single taxable unit responsible for the return filed during their marriage.

Relief Options: Recognizing that this rule can create hardship in certain situations, the IRS provides potential relief from joint and several liability. Taxpayers may qualify for Innocent Spouse Relief, Separation of Liability Relief, or Equitable Relief by filing Form 8857, Request for Innocent Spouse Relief. Each type of relief has specific requirements. More information is available in IRS Publication 971, Innocent Spouse Relief.

Making the Choice: Calculate Both Ways

Given the potential financial impact, married couples should ideally calculate their tax liability using both the MFJ and MFS filing statuses each year to determine which option results in the lowest overall tax. Tax preparation software or a tax professional can assist with this comparison. It’s important to know that once a joint return is filed, a couple generally cannot amend their return to file separately for that same year after the tax filing deadline. However, if a couple initially files separately, they usually can amend their returns to file jointly within three years from the date the original return was filed or two years from the date the tax was paid, whichever is later.

Marriage Tax Penalty vs. Bonus: Will You Pay More or Less?

Decoding the Concepts: Penalty vs. Bonus

The terms “marriage penalty” and “marriage bonus” describe how a couple’s total federal income tax liability can change solely due to getting married and filing under a married status (usually MFJ) compared to what their combined tax liability would have been if they had remained single.

• A marriage penalty occurs when a married couple’s combined income tax is higher than the sum of the taxes they would have paid as two single individuals.
• A marriage bonus occurs when a married couple’s combined income tax is lower than the sum of the taxes they would have paid as two single individuals.

These effects are relatively common; studies indicate that roughly similar proportions of married couples experience penalties as experience bonuses, although the average bonus amount tends to be larger than the average penalty amount.

Why Do Penalties and Bonuses Occur?

Several features of the U.S. federal income tax system interact to create these marriage-related tax effects:

Combined Income & Progressive Rates: The U.S. employs a progressive tax system, where higher levels of income are taxed at progressively higher rates. When a couple files jointly (MFJ), their incomes are combined to determine their tax liability. How this combined income falls into the tax brackets designed for married couples versus how their individual incomes would fall into single-filer brackets is the primary driver of penalties and bonuses.

Income Disparity: The relative difference in the spouses’ individual incomes plays a critical role.

• Bonuses are likely with unequal incomes: When one spouse earns significantly more than the other (or one spouse has no earnings), filing jointly often results in a bonus. The higher earner’s income benefits from the wider tax brackets available to MFJ filers at lower and middle income levels, effectively pulling some income that would have been taxed at higher rates as a single filer into lower MFJ brackets. One-earner couples almost always receive a marriage bonus.
• Penalties are likely with similar incomes: When both spouses earn roughly comparable amounts, especially if both incomes are substantial, combining them on a joint return can push the couple into higher tax brackets more quickly than if they had filed as singles.

Bracket Structure: The design of the tax brackets for MFJ compared to Single status is crucial. Following the Tax Cuts and Jobs Act (TCJA) of 2017, most MFJ tax brackets (10%, 12%, 22%, 24%, 32%) are exactly twice as wide as the corresponding Single brackets. This change significantly reduced marriage penalties for many couples compared to prior law. However, a notable exception exists at the top: the 37% tax bracket begins at $731,201 for MFJ filers in 2024, which is considerably less than double the $609,351 threshold for Single filers. This structural difference creates a distinct marriage penalty for very high-income couples with two earners.

Standard Deduction & Filing Status Interaction: The standard deduction for MFJ ($29,200 in 2024) is exactly double the Single amount ($14,600 in 2024). This parity helps prevent penalties that existed under prior law when the MFJ deduction was less than double. However, marriage penalties can still arise for couples with children because getting married means neither spouse can use the Head of Household (HoH) filing status, which often offers wider brackets and a larger standard deduction than Single status for eligible unmarried parents.

Phase-outs for Credits/Deductions: Certain tax benefits decrease or disappear entirely (phase out) as income rises. When a couple marries and combines their income, their total income might exceed the phase-out threshold for a particular credit or deduction sooner than if they were single, effectively creating a penalty. The Earned Income Tax Credit (EITC) is a prime example, as its income limits for MFJ filers are significantly less than double the limits for single or HoH filers, potentially penalizing lower-income working couples upon marriage.

The existence of both penalties and bonuses illustrates a fundamental challenge in tax system design. It’s mathematically difficult to create a system that is simultaneously progressive (taxes higher incomes at higher rates), treats married couples as a single economic unit (by taxing combined income), and is perfectly “marriage neutral” (imposes the same tax regardless of marital status). The current system represents a compromise, leaning towards wider brackets to reduce penalties for many middle-income earners post-TCJA, which inherently creates bonuses for disparate earners and retains penalties for others (like high earners or those losing HoH status).

Illustrative Examples

The following examples, based on analysis from the Tax Policy Center for the 2023 tax year (using 2023 amounts for illustration), demonstrate how income distribution impacts penalties and bonuses:

Penalty Example (Similar Incomes, Children): Consider parents with two children, where each parent earns $100,000.

• Filing Jointly (MFJ): Their combined income is $200,000. Taking the 2023 MFJ standard deduction ($27,700), their taxable income is $172,300. Their 2023 income tax liability would be approximately $24,521.
• Filing Hypothetically as Unmarried: If they were not married, one parent could potentially file as Head of Household (HoH) with the children, and the other as Single. The HoH filer (with a $20,800 standard deduction in 2023) would owe about $7,125. The Single filer (with a $13,850 standard deduction in 2023) would owe about $14,261. Their combined hypothetical tax would be $21,386.
• The Penalty: Filing jointly results in $3,136 more tax ($24,521 – $21,386) than filing separately as HoH and Single. This marriage penalty arises primarily because marriage prevents either parent from using the more advantageous HoH status with its wider brackets and larger standard deduction compared to Single status.

Bonus Example (Disparate Incomes, Children): Consider parents with two children and a combined income of $200,000, where one spouse earns the entire amount and the other earns $0.

• Filing Jointly (MFJ): With a $200,000 income and the 2023 MFJ standard deduction ($27,700), their taxable income is $172,300, leading to a tax liability of approximately $24,521.
• Filing Hypothetically as Unmarried: If unmarried, the earning spouse would likely file as Head of Household (HoH). With a $200,000 income and the 2023 HoH standard deduction ($20,800), their taxable income would be $179,200. The tax liability under the HoH brackets would be approximately $30,802.
• The Bonus: Filing jointly results in $6,281 less tax ($30,802 – $24,521) than the earning spouse would pay filing as HoH. This marriage bonus occurs because the MFJ status provides wider tax brackets at lower income levels and a significantly larger standard deduction ($27,700 vs. $20,800) compared to the HoH status, leading to less income being taxed at higher rates.

These examples illustrate that the structure of tax brackets, standard deductions, and available filing statuses interact significantly with the distribution of income between spouses to determine whether marriage results in a tax penalty or a bonus.

Impact on Your Tax Rate and Standard Deduction

Marriage directly affects two fundamental components of the federal income tax calculation: the applicable tax rates and the standard deduction amount.

Federal Income Tax Brackets: A Comparison

The U.S. federal income tax system is progressive, meaning that as taxable income increases, it is subject to successively higher tax rates. An individual’s income is taxed in segments, or brackets, each corresponding to a specific rate. The “marginal tax rate” refers to the rate applied to the last dollar of income earned, while the “effective tax rate”—the total tax paid divided by total taxable income—is typically lower because not all income is taxed at the highest marginal rate.

Marriage changes which set of tax brackets applies. The table below shows the federal income tax brackets for the 2024 and 2025 tax years for Single, Married Filing Jointly (MFJ), and Married Filing Separately (MFS) statuses.

Table 1: Federal Income Tax Brackets (2024 & 2025)

Tax Year 2024 (For taxes due April 2025)

Tax Year 2025 (For taxes due April 2026)

Observation of the table reveals that for the 10% through 32% brackets, the income thresholds for MFJ are exactly double those for Single and MFS filers. This structure generally benefits couples filing jointly, especially when incomes are disparate, as more combined income falls into the lower brackets. However, the 35% and 37% brackets show that the MFJ thresholds are less than double the Single thresholds, creating the potential marriage penalty for high-earning dual-income couples. The MFS brackets mirror the Single brackets (except at the very top), offering no inherent rate advantage over being unmarried and underscoring the tax preference for joint filing.

Standard Deduction Amounts: A Comparison

Taxpayers can reduce their taxable income by either taking the standard deduction or itemizing deductions (listing specific deductible expenses like mortgage interest, certain taxes, charitable contributions, etc.). They choose whichever method results in a larger deduction. The standard deduction is a fixed dollar amount based on filing status, age, and blindness, adjusted annually for inflation.

The table below shows the standard deduction amounts for 2024 and 2025.

Table 2: Standard Deduction Amounts (2024 & 2025)

Additional Standard Deduction for Age (65+) or Blindness:

2024:

• $1,950 for Single or HoH (if 65+ or blind)
• $3,900 for Single or HoH (if 65+ and blind)
• $1,550 per qualifying spouse for MFJ, MFS, or Qualifying Surviving Spouse (if 65+ or blind)
• $3,100 per qualifying spouse for MFJ, MFS, or Qualifying Surviving Spouse (if 65+ and blind)

2025:

• $2,000 for Single or HoH (if 65+ or blind)
• $4,000 for Single or HoH (if 65+ and blind)
• $1,600 per qualifying spouse for MFJ, MFS, or Qualifying Surviving Spouse (if 65+ or blind)
• $3,200 per qualifying spouse for MFJ, MFS, or Qualifying Surviving Spouse (if 65+ and blind)

The table clearly shows that the MFJ standard deduction is exactly double the amount for Single and MFS filers. This direct doubling is a significant aspect of the tax code that helps mitigate marriage penalties for couples who take the standard deduction, ensuring basic parity compared to two single individuals. It particularly benefits couples where one spouse has little or no income, as the joint deduction allows the higher-earning spouse to effectively utilize the portion of the standard deduction attributable to the lower-earning spouse. The comparison between the MFJ and MFS amounts further emphasizes the strong financial incentive to file jointly, suggesting MFS is typically chosen for non-tax reasons despite the standard deduction parity with Single status.

It’s also worth noting the standard deduction is limited for individuals who can be claimed as a dependent on another taxpayer’s return. For 2024, this limit is the greater of $1,300 or the individual’s earned income plus $450 (but not more than the basic standard deduction for their filing status).

The annual inflation adjustments applied to both tax brackets and standard deductions are vital for preventing “bracket creep,” where cost-of-living wage increases could otherwise push taxpayers into higher tax brackets. While the dollar amounts change yearly, the fundamental structure—such as the doubling of most MFJ brackets/deductions and the non-doubling of the top bracket—remains consistent under current law, meaning the conditions creating potential penalties or bonuses persist unless Congress enacts legislative changes.

How Marriage Affects Key Tax Credits and Deductions

Getting married can significantly alter a couple’s eligibility for various federal tax credits and deductions, or change the amount they can claim. These changes often occur because combining incomes on a joint return affects phase-out limits, or because specific rules restrict certain benefits based on filing status, particularly for those filing Married Filing Separately (MFS).

Earned Income Tax Credit (EITC)

What it is: The EITC is a refundable tax credit designed to help low-to-moderate income working individuals and families. “Refundable” means that if the credit amount is larger than the tax owed, the taxpayer receives the difference as a refund.

Marriage Impact:

• MFS Ineligibility: A major restriction is that taxpayers generally cannot claim the EITC if their filing status is Married Filing Separately.
• Income Limits and Potential Penalty: While MFJ filers have higher income limits for the EITC than single or Head of Household (HoH) filers, these limits are not double. This means that two individuals who might have qualified for the EITC separately (e.g., one as HoH, one as Single) could find their combined income on a joint return exceeds the MFJ threshold, resulting in a loss of the credit – an effective marriage penalty for some lower-income couples. For the 2024 tax year, the Adjusted Gross Income (AGI) must be less than the following amounts to qualify:
  • MFJ: $66,819 (3+ children), $62,688 (2 children), $56,004 (1 child), $25,511 (no children).
  • Single/HoH/Qualifying Surviving Spouse: $59,899 (3+ children), $55,768 (2 children), $49,084 (1 child), $18,591 (no children).
• Potential Bonus: Conversely, marriage can sometimes increase EITC benefits. For instance, if a non-working parent marries a low-earning worker and they file jointly, their combined situation might qualify them for the EITC when the single parent alone did not.

Other Rules: To qualify for EITC, taxpayers must have earned income from employment or self-employment. Investment income is limited ($11,600 or less for 2024). Taxpayers, spouses, and qualifying children must have valid Social Security Numbers (SSNs) valid for employment. Generally, filers must be U.S. citizens or resident aliens for the entire year and cannot be claimed as a qualifying child by someone else. Specific age rules (at least 25 but under 65) apply if claiming the EITC without a qualifying child. The IRS offers an EITC Assistant tool online to help determine eligibility.

Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC)

What they are: The Child Tax Credit (CTC) provides a tax credit for qualifying children. For tax years 2024 and 2025, the maximum CTC is $2,000 per qualifying child under age 17. A portion of this credit may be refundable through the Additional Child Tax Credit (ACTC), meaning taxpayers could receive it back as a refund even if they don’t owe tax. For 2024 and 2025, the maximum refundable amount via ACTC is $1,700 per qualifying child.

Marriage Impact:

• Income Phase-out: Eligibility for the full CTC amount depends on the taxpayer’s Modified Adjusted Gross Income (MAGI). The credit amount begins to decrease (phase out) for taxpayers with MAGI above certain thresholds. For 2024 and 2025, this phase-out begins at $400,000 for those filing MFJ. Importantly, this threshold is exactly double the $200,000 threshold that applies to all other filing statuses, including Single, HoH, and Married Filing Separately. This doubling of the phase-out threshold for MFJ effectively prevents a marriage penalty related to this credit for most couples, ensuring parity with two single individuals at the point where the credit begins to reduce.
• MFS Status: While MFS filers face the $200,000 phase-out threshold, claiming the credit while filing separately can involve complexities, particularly if advance payments were received based on joint information. Taxpayers filing MFS should carefully review the instructions for Form 1040 and Schedule 8812, Credits for Qualifying Children and Other Dependents.

Qualifying Child Rules: To qualify for the CTC/ACTC, a child generally must meet several tests:

• Age: Under 17 at the end of the tax year.
• Relationship: Be the taxpayer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-sibling, or a descendant (grandchild, niece, nephew). Adopted children qualify.
• Support: Not have provided more than half of their own financial support during the year.
• Dependent Status: Be claimed as a dependent on the taxpayer’s return.
• Citizenship: Be a U.S. citizen, U.S. national, or U.S. resident alien.
• Residency: Have lived with the taxpayer for more than half the tax year (exceptions apply for newborns, deaths, temporary absences).
• Joint Return: Not have filed a joint return with a spouse for the tax year (unless filed only to claim a refund).
• SSN: Have an SSN that is valid for employment, issued before the tax return due date (including extensions).

Credit for Other Dependents (ODC): For dependents who do not meet the requirements for the CTC (e.g., children age 17 or older, qualifying relatives), taxpayers may be able to claim the non-refundable ODC of up to $500 per dependent. This credit uses the same income phase-out thresholds as the CTC ($400,000 MFJ / $200,000 other statuses). The dependent must have an SSN, ITIN, or Adoption Taxpayer Identification Number (ATIN).

Education Credits (AOTC & LLC)

What they are: Two credits help offset the costs of higher education:

• American Opportunity Tax Credit (AOTC): Worth up to $2,500 per eligible student per year for qualified expenses paid for the first four years of undergraduate education. Up to 40% ($1,000) is refundable.
• Lifetime Learning Credit (LLC): Worth up to $2,000 per tax return (not per student) per year for qualified tuition and fees paid for undergraduate, graduate, and professional degree courses, including courses to acquire or improve job skills. This credit is non-refundable.

Marriage Impact:

• MFS Ineligibility: A significant restriction is that taxpayers cannot claim either the AOTC or the LLC if their filing status is Married Filing Separately.
• Income Phase-out: Both credits are subject to income limitations based on MAGI. For 2024 and 2025, the full credits are available for MFJ filers with MAGI up to $160,000. This is double the $80,000 limit for single filers. The credits phase out for MFJ filers with MAGI between $160,001 and $180,000 (double the $80,001-$90,000 range for single filers). This doubling of the income thresholds for MFJ prevents a marriage penalty related to these credits for most couples.

Other Rules: To claim either credit, qualified education expenses must be paid for an eligible student enrolled at an eligible educational institution. The student must generally be the taxpayer, their spouse, or a dependent claimed on their return. Taxpayers usually need to receive Form 1098-T, Tuition Statement, from the educational institution. Specific enrollment requirements apply (e.g., student must be pursuing a degree and enrolled at least half-time for the AOTC).

Student Loan Interest Deduction

What it is: This is an “above-the-line” deduction, meaning it reduces Adjusted Gross Income (AGI). Taxpayers can deduct the amount of interest paid during the year on a qualified student loan, up to a maximum of $2,500.

Marriage Impact:

• MFS Ineligibility: Taxpayers cannot claim the student loan interest deduction if their filing status is Married Filing Separately.
• Income Phase-out: The deduction amount is gradually reduced (phased out) if MAGI exceeds certain levels. For 2024, the phase-out range for MFJ filers is $165,000 to $195,000. This is more than double the phase-out range for single filers, which is $80,000 to $95,000. This structure ensures that marriage itself generally does not cause a couple to lose the deduction due to combined income, avoiding a penalty in this regard.

Other Rules: The taxpayer must be legally obligated to pay the interest on the loan, and the loan must have been taken out solely to pay for qualified education expenses for the taxpayer, their spouse, or a dependent. The deduction cannot be claimed if the taxpayer can be claimed as a dependent on someone else’s return. Lenders typically issue Form 1098-E, Student Loan Interest Statement, if $600 or more in interest was paid.

Itemized Deductions

For taxpayers who choose to itemize deductions instead of taking the standard deduction, marriage can have several effects, particularly related to AGI thresholds and specific dollar limits. A key rule, as previously noted, is that if married taxpayers file separately, both must either itemize or take the standard deduction; they cannot mix methods.

Medical Expenses: Unreimbursed medical expenses are deductible only to the extent they exceed 7.5% of the taxpayer’s AGI.

• Marriage Impact: When filing jointly, the 7.5% threshold is applied to the couple’s combined AGI. This higher AGI can make it more difficult to reach the deduction threshold compared to when they were single. Filing separately (MFS) means the 7.5% threshold applies to each spouse’s individual AGI. This might allow a spouse with high medical bills and lower individual AGI to claim a larger deduction. However, this forces the other spouse to also itemize, potentially resulting in a worse overall tax outcome for the couple. Special rules apply for allocating expenses paid from joint versus separate funds if filing MFS, particularly in community property states.

State and Local Taxes (SALT) Deduction: This itemized deduction allows taxpayers to deduct certain state and local taxes paid, including income taxes or general sales taxes (not both), and real property taxes and personal property taxes.

• Marriage Impact: The TCJA imposed a significant limitation on this deduction for tax years 2018 through 2025. The total SALT deduction is capped at $10,000 per household for most filing statuses, including MFJ, Single, and HoH. However, for taxpayers using the Married Filing Separately status, this cap is halved to $5,000. This creates a substantial marriage penalty for couples who itemize, live in areas with high state and local taxes, and choose to file separately.

The pattern across these credits and deductions reveals a strong tax code preference for the Married Filing Jointly status. MFS status consistently results in ineligibility for major benefits like the EITC, education credits, and the student loan interest deduction, and it imposes stricter limits on others like the SALT deduction. This structure simplifies tax administration and discourages strategic splitting of income and deductions across separate returns, effectively channeling most married couples towards joint filing to access these provisions.

Simultaneously, the design of income phase-outs for many credits and deductions often reflects an effort towards marriage neutrality, particularly after the TCJA. Setting MFJ income thresholds at double (or sometimes more than double) the single thresholds—as seen with the CTC, education credits, and student loan interest deduction—aims to prevent couples from losing benefits simply because their incomes are combined upon marriage. This promotes horizontal equity up to the phase-out points. Exceptions like the EITC, where MFJ limits are not doubled, likely stem from specific policy goals or cost considerations related to that particular credit. The interplay between AGI thresholds (like for medical expenses) and filing status choices further illustrates how tax planning might optimize one deduction but often involves trade-offs due to interconnected rules like the MFS itemization requirement.

Beyond Income Tax: Other Financial Considerations

Marriage impacts more than just annual income tax filings. It also has significant implications for long-term financial planning, including estate taxes, healthcare savings accounts, and Social Security benefits.

Estate Planning: The Unlimited Marital Deduction

What it is: A cornerstone of estate planning for married couples is the unlimited marital deduction. This provision of federal estate and gift tax law allows an individual to transfer an unrestricted amount of assets to their spouse, either during their lifetime (as gifts) or upon their death (as inheritances), without incurring federal estate or gift tax on those transfers. This rule effectively treats the married couple as a single economic unit for the purpose of wealth transfer between spouses.

Purpose and Effect: The primary effect of the unlimited marital deduction is to defer estate and gift taxes on assets transferred to the surviving spouse until that second spouse passes away. The assets received via the marital deduction become part of the surviving spouse’s estate and may be subject to estate tax upon their death, depending on the value of their total estate and the applicable exemption amount at that time.

Citizenship Requirement: A critical requirement is that the unlimited marital deduction generally applies only if the recipient (surviving) spouse is a U.S. citizen. Transfers to a non-U.S. citizen spouse are subject to different rules. While lifetime gifts to a non-citizen spouse have a generous annual exclusion limit ($180,000 in 2024, increasing to $190,000 in 2025), unlimited transfers are not permitted without potential tax consequences. To achieve tax deferral similar to the marital deduction for assets passing at death to a non-citizen spouse, the assets typically must be placed into a specialized trust known as a Qualified Domestic Trust (QDOT). This structure helps ensure that the assets will eventually be subject to U.S. estate tax. The legal and economic view of the married couple as a single unit for wealth transfer is thus conditional on both spouses being integrated into the U.S. tax system via citizenship.

Exemption Amounts: It’s important to note that federal estate tax currently affects only a very small number of estates due to a high exemption amount. For individuals dying in 2024, the federal estate and gift tax exemption is $13.61 million per person. This amount increases to $13.99 million for 2025. A married couple can effectively shield double this amount. Most estates fall well below this threshold and owe no federal estate tax. However, this high exemption amount is scheduled to be cut roughly in half at the end of 2025 unless Congress extends the current law.

Gift Tax Annual Exclusion: Separately from the unlimited marital deduction between spouses, there is an annual exclusion for gifts made to other individuals (e.g., children, friends). For 2024, an individual can gift up to $18,000 per recipient without using up any of their lifetime estate/gift tax exemption or incurring gift tax. This amount increases to $19,000 for 2025. Married couples can combine their exclusions to gift double the annual amount per recipient ($36,000 in 2024, $38,000 in 2025).

Saving for Healthcare: Health Savings Accounts (HSAs)

What they are: HSAs are tax-advantaged savings accounts available to individuals enrolled in a qualifying High-Deductible Health Plan (HDHP). They offer a triple tax benefit: contributions are often tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free.

Marriage Impact on Contributions:

Contribution Limits: The maximum amount that can be contributed to an HSA each year depends on whether the individual has self-only or family HDHP coverage.

• For 2024: $4,150 for self-only coverage, $8,300 for family coverage.
• For 2025: $4,300 for self-only coverage, $8,550 for family coverage.

Family Coverage Rule: If either spouse in a married couple has family HDHP coverage, the IRS treats both spouses as having family coverage for contribution limit purposes. The total combined contribution limit for both spouses is the family limit ($8,300 for 2024, $8,550 for 2025). This rule simplifies limits when spouses might have different coverage situations (e.g., one on a family plan, one uninsured or on a non-HDHP).

Splitting Contributions: When a married couple is subject to the family contribution limit, they can divide that total limit between their individual HSA accounts in any way they choose. For example, in 2024, one spouse could contribute $8,300 to their HSA and the other $0, or they could split it $4,150 each, or any other combination adding up to $8,300. If they do not agree on a division, the limit is split equally between them. This flexibility requires coordination to ensure the total contributions (including any employer contributions) do not exceed the family limit, thus avoiding potential penalties.

Catch-Up Contributions: Individuals aged 55 or older by the end of the tax year can contribute an additional $1,000 to their HSA as a “catch-up” contribution. If both spouses are 55 or older, each spouse can make a $1,000 catch-up contribution, but these extra amounts must be deposited into their own respective HSAs. This means a married couple both age 55 or older with family coverage could contribute a total of $10,300 in 2024 ($8,300 family limit + $1,000 catch-up + $1,000 catch-up) or $10,550 in 2025 ($8,550 + $1,000 + $1,000), distributed between their two HSAs. The requirement for separate catch-up contributions reinforces individual account ownership within the marriage context.

Last-Month Rule: If an individual becomes eligible for an HSA (i.e., enrolled in an HDHP) on the first day of the last month of their tax year (December 1 for most), they are considered eligible for the entire year and can contribute the full maximum amount applicable to their situation. However, they must remain eligible (generally, stay covered by an HDHP and meet other requirements) throughout a “testing period,” which runs until the end of the following calendar year (e.g., through December 31, 2025, for a contribution made for 2024 under this rule). Failure to remain eligible during the testing period (except due to death or disability) results in the extra contributions being included in income and subject to a penalty.

Retirement Planning: Social Security Spousal Benefits

Marriage can significantly impact Social Security retirement benefits by potentially allowing one spouse to claim benefits based on the other spouse’s earnings record. These spousal benefits provide an important source of retirement income, especially for individuals who had lower lifetime earnings or spent time out of the workforce.

Eligibility (Current Spouses):

• The spouse claiming benefits must generally be at least age 62. An exception exists if the claiming spouse is caring for the worker’s child who is under age 16 or who receives Social Security disability benefits; in this case, the spouse can claim benefits at any age.
• The other spouse (the “worker” whose record is being used) must be receiving their own Social Security retirement or disability benefits.
• The couple must generally have been married for at least one continuous year before the claiming spouse can receive benefits on the worker’s record. (Exceptions apply, such as if the claiming spouse is the parent of the worker’s child).

Eligibility (Divorced Spouses): An individual may be eligible for benefits based on an ex-spouse’s work record if they meet specific criteria:

• The marriage must have lasted for at least 10 years.
• The individual seeking benefits must be currently unmarried. If they remarry, they generally lose eligibility for benefits on the former spouse’s record, unless the later marriage ends by death, divorce, or annulment.
• The individual must be at least age 62.
• The ex-spouse must be entitled to Social Security retirement or disability benefits (generally meaning they are age 62 or older and have enough work credits).
• Crucially, unlike for current spouses, the ex-spouse does not need to have actually applied for or started receiving their benefits if the couple has been divorced for at least two continuous years. This rule prevents an ex-spouse from controlling their former partner’s access to benefits by delaying their own retirement application.
• The benefit the individual is entitled to receive based on their own work record must be less than the amount they would receive as a spousal benefit based on the ex-spouse’s record.

Benefit Amount: The maximum spousal benefit (for both current and divorced spouses) is equal to 50% of the worker spouse’s (or ex-spouse’s) Primary Insurance Amount (PIA), which is the benefit amount they are entitled to at their full retirement age (FRA). Any delayed retirement credits the worker earns by waiting past FRA to claim their own benefits do not increase the potential spousal benefit amount. If the claiming spouse starts receiving spousal benefits before reaching their own FRA, the benefit amount is permanently reduced. The reduction can be substantial; claiming at the earliest age, 62, can result in a benefit as low as 32.5% of the worker’s PIA. The reduction does not apply if the spouse claims before FRA but is caring for a qualifying child under 16 or disabled.

Deemed Filing: If an individual is eligible for both their own retirement benefit and a spousal benefit, Social Security’s “deemed filing” rule generally requires them to apply for both benefits simultaneously when they file. The Social Security Administration (SSA) will pay the individual’s own retirement benefit first. If the spousal benefit is higher, SSA will add an amount to the retirement benefit to bring the total payment up to the higher spousal benefit level. (An exception allowing individuals born before January 2, 1954, to file a “restricted application” for only spousal benefits at FRA while delaying their own is no longer available to most current retirees).

No Impact on Worker: Importantly, when an individual receives benefits as a spouse or divorced spouse, it does not reduce the retirement or disability benefit amount paid to the worker spouse (or ex-spouse). Furthermore, the worker’s current spouse (if any) is also unaffected. Social Security can pay benefits to multiple individuals (e.g., a current spouse and multiple eligible ex-spouses) based on the same worker’s record. Divorced spouses applying for benefits on an ex-spouse’s record do not need to contact the ex-spouse, and the ex-spouse is not notified by SSA about the application.

The existence and structure of spousal and ex-spousal benefits reflect a societal acknowledgment of marriage as an economic partnership and aim to provide a measure of financial security in retirement based on that partnership, even after divorce, particularly for those whose own earnings history may be limited.

Your Post-Wedding Tax To-Do List

Getting married requires attention to a few administrative tasks related to taxes and government records. Addressing these promptly can prevent complications with tax filing, refunds, and paycheck withholding. These steps are not merely bureaucratic; they are essential for ensuring accurate records and smooth interactions with the tax system.

Updating Your Name with the Social Security Administration (SSA)

Why it’s crucial: If either spouse changes their name upon marriage (or if names are hyphenated), it is essential to report the change to the Social Security Administration (SSA). The name on an individual’s tax return must match the name associated with their Social Security number (SSN) in the SSA’s records. If the names do not match when the tax return is filed, the IRS computer systems cannot validate the return, which can lead to processing delays and postponed tax refunds.

Process: To update a name with the SSA, an individual must complete Form SS-5, Application for a Social Security Card. The process can often be initiated online through the SSA website or SSA.gov/ssnumber. Depending on the state and situation, the application might be completed fully online or require an in-person visit to a local SSA office or Card Center to present required documents. Appointments are recommended for office visits and may sometimes be scheduled online.

Required Documents: Individuals will need to provide original documents (or copies certified by the issuing agency; photocopies or notarized copies are generally not accepted) proving their identity (e.g., valid driver’s license, state ID, passport), the legal name change event (e.g., original or certified marriage certificate), and potentially U.S. citizenship. Identity documents showing the old name might also be requested. A detailed list of acceptable documents is available on the SSA website under “Learn What Documents You Need” for a corrected card.

Timing: It is advisable to complete the name change process with the SSA before filing a tax return under the new name. If a tax return needs to be filed before the SSA has processed the name change, the taxpayer should use the name exactly as it appears on their current Social Security card to avoid processing issues. Employers should also be notified of the name change so that Form W-2, Wage and Tax Statement, is issued with the correct name and SSN.

SSA Contact: Information and forms are available at SSA.gov, or individuals can call 1-800-772-1213 (TTY 1-800-325-0778).

Notifying the IRS and Others of Address Changes

If marriage involves a change of address for one or both spouses, it’s important to update this information with several entities: the U.S. Postal Service (USPS), all employers (to ensure correct delivery of W-2 forms), and the IRS. Failure to update an address can result in missed tax correspondence or undelivered refund checks.

How to notify IRS: The official way to inform the IRS of an address change is by filing Form 8822, Change of Address. Taxpayers can also notify the IRS by writing to the service center where they filed their last return, providing full name(s), old and new addresses, SSN(s), and signature(s). While the USPS will forward mail for a period and may notify the IRS of the change, filing Form 8822 directly ensures the IRS updates its records promptly. Additional information is available in IRS Topic No. 157, Change Your Address – How to Notify the IRS.

Adjusting Your Tax Withholding (Form W-4)

Why it’s crucial: Marriage is a significant life event that changes a taxpayer’s filing status and potentially their tax bracket, eligibility for credits, and applicable deductions. Therefore, the withholding instructions provided to employers via Form W-4 before marriage are almost certainly inaccurate for the new marital situation. Continuing with outdated withholding can lead to either under-withholding (resulting in an unexpected tax bill and possible penalties at tax time) or over-withholding (receiving less take-home pay throughout the year, effectively giving the government an interest-free loan).

Action Required: Newly married couples should provide their respective employers with a new Form W-4, Employee’s Withholding Certificate, shortly after getting married. Some IRS guidance suggests doing this within 10 days. If both spouses work, it is essential that both update their W-4s, coordinating their entries to ensure the correct total amount is withheld from their combined paychecks.

Using the Form W-4: The redesigned Form W-4 (introduced in 2020) aims for more accurate withholding. Key steps for married couples include:

• Step 1: Enter personal information and select the anticipated filing status (likely Married Filing Jointly).
• Step 2 (Multiple Jobs or Spouse Works): This step is critical for households where both spouses work, or where one person has multiple jobs. Failure to account for combined income here is a common cause of under-withholding. Taxpayers have three options:
  • Use the IRS’s online Tax Withholding Estimator or IRS.gov/individuals/tax-withholding-estimator. This is generally the most accurate method, especially for complex situations.
  • Use the Multiple Jobs Worksheet included with Form W-4.
  • Check the box in Step 2(c) on the Form W-4 for both jobs (only if there are exactly two jobs total in the household). This option is simpler but less precise, working best when both jobs have similar pay. Checking this box instructs the employer’s payroll system to calculate withholding based on half the standard deduction and tax bracket widths, effectively coordinating the withholding between the two jobs.
• Step 3 (Claim Dependents): Enter amounts for the Child Tax Credit and Credit for Other Dependents.
• Step 4 (Other Adjustments): Make further adjustments for other income not subject to withholding (like interest, dividends, or self-employment income), anticipated deductions beyond the standard deduction (if itemizing), or specify an extra dollar amount to withhold each pay period.

The need for coordination, especially for dual-earner couples, cannot be overstated. Standard withholding calculations applied independently to each spouse’s paycheck, without adjustments made in Step 2, will likely result in significant under-withholding because the system might inadvertently apply the full MFJ standard deduction and bracket widths to each job separately. The W-4 design and the online Estimator tool are specifically intended to help couples avoid this pitfall.

Resources: The current Form W-4 can be downloaded from the IRS website. Additional guidance is available in Publication 505, Tax Withholding and Estimated Tax, and Topic No. 753, Form W-4, Employee’s Withholding Certificate.

A Quick Note on State Taxes

While this article focuses on federal income tax implications, it is important for married couples to recognize that getting married can also affect their state income taxes. However, tax laws vary considerably from state to state.

Some states may structure their income tax brackets, standard deductions, or tax credits in ways that create their own versions of marriage penalties or bonuses, independent of the federal effects. For example, a state’s married filing jointly brackets might not be double the single brackets, or state-level credits might have phase-outs that disproportionately affect married couples. Some states might largely conform to federal rules, while others have entirely different systems. Some states have even implemented specific “marriage credits” designed to alleviate state-level marriage penalties.

Because federal tax law changes do not automatically apply at the state level, and each state maintains autonomy over its tax system, couples may experience different outcomes federally versus statewide. A couple could receive a federal marriage bonus but face a state marriage penalty, or vice versa. Therefore, newlyweds should consult the official website of their specific state’s tax authority (Department of Revenue or equivalent) to understand the income tax implications of marriage in their particular location.

Our articles make government information more accessible. Please consult a qualified professional for financial, legal, or health advice specific to your circumstances.