Getting Married? How Marriage Affects Your Taxes

Filing Status After Marriage

Your marital status on December 31 determines your filing status for the entire year. If you married at any point during the year, you can file as Married Filing Jointly (MFJ) or Married Filing Separately (MFS).

Married Filing Jointly

Combined income on one return

Wider tax brackets and higher standard deduction ($30,000)

Access to most credits and deductions

Both spouses are jointly liable for the entire tax bill

Married Filing Separately

Each spouse reports only their own income

Narrower brackets and lower standard deduction ($15,000)

Lose access to many credits (EITC, education credits, student loan interest deduction)

Useful when one spouse has significant medical expenses, student loans on income-driven repayment, or liability concerns

Marriage Bonus vs Marriage Penalty

A marriage bonus occurs when spouses have very different incomes. The lower-earning spouse pulls income into lower brackets, reducing the overall tax bill.

A marriage penalty occurs when both spouses earn similar high incomes. Their combined income pushes more into higher brackets than if they filed as single individuals.

Tax Planning for Couples

Compare both filing options - run the numbers for MFJ and MFS

Update your W-4 withholding after getting married

Consolidate investment accounts for easier tax-loss harvesting

Maximize both spouses' retirement accounts for double the deduction

Consider spousal IRA contributions if one spouse does not work

Review beneficiary designations on retirement accounts and insurance

Taxation.ai calculates both filing scenarios automatically and recommends the option that saves you the most.