Junior Rasmussen
Newlyweds need to consider a few things when filing their taxes jointly. First, they must decide whether to file their tax return as married filing jointly or married filing separately. This decision can impact the amount of taxes they owe or are refunded. Couples usually get fewer benefits and may pay higher taxes when filing separately. However, in certain circumstances, such as significant medical expenses or unequal incomes, filing separately might be more advantageous. Newlyweds should also update their personal information, such as any name or address changes, with the relevant authorities to ensure smooth tax processing and compliance. Additionally, they should consider adjusting their withholding by submitting a new Form W-4 to their employers within a specified timeframe.
Characteristics of filing jointly for newlyweds:
| Characteristics | Values |
|---|---|
| Name change | Report name change to the Social Security Administration |
| Address change | Notify the IRS and U.S. Postal Service |
| Filing status | Married Filing Jointly |
| Tax benefits | More likely to be eligible for credits such as the Child and Dependent Care Credit |
| Tax credits | Joint filers qualify for multiple tax credits |
| Tax liability | Total combined tax liability is often lower than the sum of individual tax liabilities |
| Tax refund | Joint tax return often provides a bigger tax refund |
| Tax rate | Same tax rate for both spouses |
| Tax return | Only one tax return required |
| Tax responsibility | Both spouses are equally responsible for the return and any taxes and penalties owed |
| Tax deductions | Joint filers receive one of the largest standard deductions each year |
| Maximum loss deduction | $25,000 |
| Standard deduction in 2024 | $29,200 |
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What You'll Learn
Notify the Social Security Administration of name changes
Newlyweds need to consider changing their withholding after marriage. They must give their employers a new Form W-4, Employee's Withholding Certificate within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the additional Medicare tax.
Married couples can choose to file their federal income taxes jointly or separately each year. Notify the Social Security Administration (SSA) of name changes as soon as possible. The name on a person's tax return must match what is on file at the SSA. If it doesn't, it could delay any tax refund. To update the information, taxpayers should file Form SS-5, Application for a Social Security Card. The form is available on SSA.gov, by calling 800-772-1213 (TTY 800-325-0778), or at a local SSA office.
When you file your return, check that your name and SSN agree with your Social Security card to prevent any delays in processing your return and issuing any refunds. Report any name change to the Social Security Administration by visiting their website, calling them, or visiting a local SSA office.
If you file jointly, the maximum loss deduction is $25,000. Filing separately impacts the couple's choice to take the standard vs. itemized deduction. When filing separately, both spouses must take deductions in the same way. One spouse cannot itemize deductions while the other takes the standard deduction. The Child Tax Credit is usually reduced because the thresholds are lower for MFS. If you received Social Security or railroad retirement benefits and lived with your spouse at any time during the year, more of your benefits could be taxable with a separate tax return.
On the other hand, filing separately could better serve your financial needs in certain circumstances. For example, if you or your spouse had a large amount of out-of-pocket medical bills, filing separately might help surpass the IRS's threshold to deduct these costs. That's because the threshold is based on a percentage of your Adjusted Gross Income (AGI), which would be lower if only considering one income.
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Inform the IRS of address changes
Newlyweds often have tax-related items to review after their wedding. One of the first things couples should do after getting married is to consider changing their withholding. Couples must give their employers a new Form W-4, Employee's Withholding Certificate within 10 days of getting married. If both spouses work, they may move into a higher tax bracket or be affected by the additional Medicare tax.
Married couples can choose to file their federal income taxes jointly or separately each year. For most couples, filing jointly makes the most sense, but each couple should review their own situation. If a couple is married as of December 31, the law says they're married for the whole year for tax purposes.
If marriage means a change of address, the IRS and U.S. Postal Service need to know. There are several ways to notify the IRS of an address change:
- If you change your address before filing your return, enter your new address on your return when you file. When your return is processed, the IRS will update its records. Be sure to also notify your return preparer.
- If you change your address after filing your return, you should notify the post office that services your old address. Because not all post offices forward government checks, you should also directly notify the IRS.
- To change your address with the IRS, you may complete a Form 8822, Change of Address (For Individual, Gift, Estate, or Generation-Skipping Transfer Tax Returns) and/or a Form 8822-B, Change of Address or Responsible Party — Business and send them to the address shown on the forms.
- You may also write to inform the IRS that your address is changing. Tell them you're changing your address by providing your Social Security number, individual taxpayer identification number, or employer identification number.
- Joint filers - If you filed a joint return, you should provide the information and signatures for both spouses. Send your written address change information to the IRS addresses listed in the instructions for the tax forms you filed.
- If you filed a joint return and now have separate addresses, each of you should notify the IRS of your new, separate addresses. Include your SSN (and the name and SSN of your spouse if you filed a joint return) in any correspondence with the IRS.
- You may also call the IRS to inform them that your address is changing.
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Understand the difference between filing jointly or separately
Newlyweds have two options when it comes to filing their taxes: filing jointly or filing separately. While filing jointly is the most common option for married couples, each couple should review their own situation to determine which option is best for them.
Filing Jointly
Filing jointly means that you will combine your income, deductions, and credits with your spouse's, all on one 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 are owed a refund, you can choose to receive multiple checks, direct deposits to multiple accounts, or a combination. The standard deduction for couples filing jointly in 2024 is $29,200 for most couples under 65, increasing to $30,000 in 2025.
Filing Separately
Filing separately means that each spouse files their own tax return, for a total of two returns. You are each taxed on your individual income and can only take deductions or credits that you qualify for individually. When filing separately, both spouses must take deductions in the same way. One spouse cannot itemize deductions while the other takes the standard deduction. The standard deduction amount for 2024 is $14,600 for those filing separately.
Factors to Consider
When deciding whether to file jointly or separately, there are several factors to consider. Firstly, if one spouse has a much lower income, filing jointly may result in higher monthly student loan payments for that spouse. Filing separately may help keep these payments more manageable. Secondly, if one spouse has large out-of-pocket medical bills, filing separately may help surpass the IRS's threshold to deduct these costs. Thirdly, if you live in a community property state, filing a joint tax return may be in your best interest. Finally, if you have similar incomes and one spouse has significant itemized deductions, filing separately may result in a larger overall deduction.
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Adjust your withholding
As a newly married couple, you and your spouse can choose to file your federal income taxes jointly or separately each year. However, if both of you work, you may move into a higher tax bracket or be affected by the additional Medicare tax. Therefore, you should adjust your withholding to ensure you are paying the right amount of tax.
Firstly, you must notify the Social Security Administration (SSA) of any name changes after marriage, to ensure that the name on your tax return matches the name associated with your social security number on file with the SSA. You can do this by filing Form SS-5, Application for a Social Security Card.
Secondly, you must notify the IRS of any address changes after marriage. You can do this by completing and sending the IRS Form 8822, Change of Address.
Thirdly, you must give your employer a new Form W-4, Employee's Withholding Certificate within 10 days of getting married. You can use the Tax Withholding Estimator on IRS.gov to help complete the new form. You can also use TurboTax's W-4 Withholding Calculator to determine the amount of withholding you should state on your W-4.
Finally, you should review Publication 505, Tax Withholding and Estimated Tax, for more information on adjusting your withholding.
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Complete a new Form W-4
Newly married couples must complete and submit a new Form W-4, or "Employee's Withholding Certificate", to their employers within 10 days. This form is used to determine how much federal income tax should be withheld from each paycheck. While it is not necessary to fill out a new Form W-4 every year, it is recommended that you review your tax withholding annually or whenever you experience significant life changes, such as marriage.
When completing the new Form W-4, you will need to provide basic personal information, including your name, address, Social Security number, and tax filing status. For your tax filing status, you can choose from options such as Single, Married Filing Separately, Married Filing Jointly, Qualifying Surviving Spouse, or Head of Household. If you select "Married Filing Jointly," and both you and your spouse are employed, there is a specific box you can check on the form to indicate this.
It is important to accurately estimate your deductions when filling out the form. The W-4 assumes you will take the standard deduction when filing your tax return. However, if you plan to itemize your deductions, you should estimate those extra deductions and make the necessary changes on the form. Additionally, if you want to have a specific amount of money withheld from each check for taxes, you can indicate this on the form as well.
If you and your spouse have multiple jobs or sources of income, there are a few options to consider. You can use the IRS Withholding Estimator to determine your withholding based on income amounts from all jobs. Alternatively, you can complete the Multiple Jobs Worksheet on the W-4 form for the highest-paying job, or check a specific box on both W-4 forms if you have a total of two jobs and earn roughly the same amount from both.
It is worth noting that deciding whether to file taxes jointly or separately as a married couple can have significant tax implications. While filing jointly often provides benefits such as a larger standard deduction and lower taxes, there may be circumstances where filing separately could be more advantageous. For example, if one spouse has significant out-of-pocket medical expenses or student loan payments, filing separately might allow for greater tax deductions.
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Frequently asked questions
Filing jointly provides access to more tax credits and deductions, which can reduce your taxable income. For example, joint filers are more likely to be eligible for credits such as the Child and Dependent Care Credit.
If one spouse has a lot of out-of-pocket medical expenses or student loan payments, filing separately may be more beneficial as it could help surpass the IRS's threshold to deduct these costs.
You'll need to notify the Social Security Administration if you changed your name, so the IRS can match your new name with your Social Security number. You should also inform the IRS and U.S. Postal Service if you changed your address.
No, you don't need your spouse's permission to file separate tax returns. However, you should let your spouse know of your intention not to file a joint return.
