June is the season of vows, venues, and cake tastings. Getting married changes your tax life, and understanding those changes now can save you money, stress, and a few unexpected letters from Uncle Sam. Here’s what newlywed couples need to know.

Choosing the Right Filing Status

Once you’re married, you must choose a married filing status: Married Filing Jointly (MFJ) or Married Filing Separately (MFS).  Most couples benefit from filing Married Filing Jointly (MFJ), which often comes with lower tax rates and higher income thresholds for various deductions and credits.

However, Married Filing Separately (MFS) might be worth considering in certain situations, such as:

• One of you is on an income-driven student loan repayment plan and wants to keep payments based on your own income
• There are specific concerns related to state taxes, Obamacare, or how Social Security benefits are taxed (though these cases are rare)

However, filing separately may disqualify you from several tax breaks, including:

• The Earned Income Tax Credit (EITC)
• Child and Dependent Care Credit
• Education credits like the American Opportunity and Lifetime Learning Credit
• Student loan interest deduction

Note: If you’re worried about your refund being applied to a spouse’s debt, you may be eligible to file for injured spouse relief while still filing jointly.

Want to see how the two filing statuses compare? Read our guide to MFS vs. MFJ. If you’re still unsure what the best route to take is, consult with a tax preparer.

Update Your Records

Getting married often means changes to your name, address, and workplace paperwork. To avoid delays or mismatches when filing your return, make sure to update the following:

• Social Security Administration (SSA) if you changed your name. File Form SS-5 so your new name matches IRS records.
• IRS with your new address using Form 8822. You can also simply update it when you file your next return.
• Employer/Payroll system and W-4 withholding form to ensure the right tax is withheld from your paycheck. We recommend using the Single withholding status if both spouses will be working.
• U.S. Postal Service so important tax documents find their way to your door.

Maximize Your Benefits Together

Marriage can open the door to new financial strategies. Coordinating your finances as a team can lead to smarter savings and stronger long-term planning. Here are some items to consider:

• Health Insurance & HSA Eligibility: Review both of your employer-sponsored plans. You may be able to cut costs or get better coverage by joining the same plan. If you switch to a high-deductible health plan together, you may qualify for a family Health Savings Account, allowing you to contribute more pre-tax dollars and reduce your taxable income.
• Retirement Contributions & Deductions: With two incomes, you may be able to maximize contributions to 401(k)s or IRAs. Even if one spouse doesn’t work, you may qualify for a spousal IRA, allowing both of you to take advantage of retirement deductions.
• Itemizing Deductions Strategically: Some deductions, like medical expenses or charitable contributions, are more powerful when itemized jointly. Especially if your combined spending exceeds the standard deduction threshold.

Selling a Home?

If one of you owned a home before the wedding, and you’re planning to sell it, marriage could come with a tax break. Married couples filing jointly can exclude up to $500,000 of profit from capital gains taxes on the sale of a primary residents (versus the $250,000 exclusion available to single filers). To qualify, the home must have been your primary residence for both spouses for at least two of the five years prior to the sale.

In the Event of Loss…

It’s not romantic, but it’s important. If one spouse passes away, the surviving spouse can generally still file jointly for the year of death.

For the two years following, they may qualify for Qualifying Surviving Spouse status. This offers many of the same tax benefits as Married Filing Jointly, including higher standard deductions and more favorable tax brackets. However, this status can only be used if you have a dependent child and haven’t re-married.

While it’s a difficult topic, understanding this can ease the burden during a challenging time. Consider consulting with a tax professional as needed. The accountants at Murtha & Flischel are available for you year-round.

Marriage Is an Emotional and Financial Union

Marriage marks a shift… sharing a life also means sharing certain financial responsibilities. Take time to review your financial landscape together.

Update your records.

Ask questions.

Plan ahead.

When it comes to marriage and money, a little preparation goes a long way.