Just Married? Here's What You Need to Know About Filing Taxes Together
Marriage changes a lot of things—your last name (maybe), your finances, your future plans, and yes, your taxes!
While most newlyweds are busy planning honeymoons, combining households, and adjusting to married life, there's one important topic that often gets overlooked: how getting married affects your income taxes.
At Casler Financial, we often hear questions like:
Is it better to file taxes jointly or separately?
Will getting married lower our taxes?
Am I responsible for my spouse's tax debt?
What happens if one of us owns a business?
Do we need to change our tax withholding?
The answers might surprise you! Marriage can create some wonderful tax-saving opportunities, but it can also introduce new responsibilities and, in some cases, a higher tax bill.
Let's break down what you should know before filing your first tax return as a married couple.
1. Your Marital Status on December 31 Determines Your Filing Options
Here's something many newlyweds don't realize: The IRS considers you married for the entire tax year if you're legally married on December 31.
That means whether you got married on January 1 or December 31, you'll generally have two filing options for that tax year:
Married Filing Jointly (MFJ): You and your spouse combine your income, deductions, and credits on one tax return.
Married Filing Separately (MFS): Each spouse files their own tax return, reporting their respective income and deductions under applicable tax rules.
For most married couples, filing jointly provides the greatest overall tax benefit. But that's not always the case.
2. What Does Married Filing Jointly Actually Mean?
When you file a joint tax return, you're essentially telling the IRS, "We're combining our tax information into one return."
Both spouses report their income, including wages, self-employment earnings, investment income, rental income, and other taxable income.
You also combine applicable deductions and tax credits.
Potential benefits of filing jointly include:
A larger standard deduction than a married person filing separately.
Access to certain tax credits and deductions that are limited or unavailable to couples filing separately.
Potentially lower tax rates when one spouse earns significantly more than the other.
More favorable income thresholds for certain tax benefits.
Generally simpler tax preparation than filing two separate returns.
For example, imagine one spouse earns $120,000 annually while the other earns $30,000.
When filing jointly, their combined income may be taxed more favorably than if each filed separately, because the joint tax brackets can help balance the difference between their earnings.
However, when both spouses earn similar, higher incomes, the benefits may be smaller—and certain tax provisions can create what is sometimes called a marriage penalty.
3. Can Getting Married Actually Increase Your Taxes?
Yes! And this is one of the biggest surprises for some newlyweds.
Although many married couples benefit from filing jointly, getting married doesn't automatically mean you'll pay less in taxes.
Some tax deductions and credits have income limitations. When two people combine their incomes, they may exceed those thresholds.
This can affect benefits such as:
Education tax credits
Student loan interest deductions
Certain retirement contribution deductions
Child-related tax credits
Other income-based tax benefits
Marriage can also affect your eligibility for health insurance premium tax credits if you purchase coverage through the Marketplace.
And for higher-income couples, certain taxes and deduction limitations can create an additional tax burden.
The takeaway? It's worth running the numbers rather than assuming marriage will automatically save you money.
4. What About Married Filing Separately?
While Married Filing Jointly is often the most advantageous option, there are circumstances where filing separately deserves consideration.
For example:
One spouse has significant tax liabilities or financial concerns. Filing separately may help limit responsibility for certain tax obligations arising from the other spouse's separate return.
One spouse has substantial medical expenses. Because deductible medical expenses must exceed a percentage of adjusted gross income, filing separately may occasionally produce a better result.
One spouse has student loans. For borrowers using certain income-driven repayment plans, filing separately may reduce the income considered when calculating monthly student loan payments. The potential loan savings should be compared with any additional income tax.
There are concerns about the accuracy of a spouse's tax reporting. Filing separately may be worth considering when one spouse is uncomfortable signing a joint return.
However, filing separately comes with significant limitations.
Certain credits and deductions become unavailable, and others are substantially restricted. Additionally, if one spouse itemizes deductions, the other generally cannot claim the standard deduction.
That's why we recommend evaluating both filing options before making a decision.
5. Important: Filing Jointly Means Sharing Responsibility
This is something every married couple should understand before signing a joint tax return.
When you file Married Filing Jointly, both spouses generally become legally responsible for the entire tax liability on that return.
The IRS calls this joint and several liability.
That means if your spouse fails to report income, incorrectly claims deductions, or doesn't pay the taxes owed, the IRS may pursue either spouse for the full amount—even if the income or error belonged entirely to one person.
And yes, that responsibility can continue even after a divorce.
There are certain IRS relief provisions, including innocent spouse relief, but qualifying isn't automatic.
Before signing a joint return, both spouses should review it, understand what's being reported, and feel comfortable with its accuracy.
6. Don't Forget to Update Your Tax Withholding!
This is one of the most common mistakes we see with newly married couples.
After getting married, you may be tempted to simply change your Form W-4 at work from Single to Married Filing Jointly.
But be careful!
If both spouses work, selecting Married Filing Jointly without properly accounting for both incomes could result in too little federal income tax being withheld.
The result? An unexpected tax bill when you file.
We recommend using the IRS Tax Withholding Estimator or working with a tax professional to review your withholding after marriage.
This is especially important if either spouse:
Has multiple jobs
Owns a business or earns self-employment income
Receives bonuses or commissions
Has investment or rental income
Makes estimated tax payments
A little planning now can prevent an unpleasant surprise next April.
7. What If One Spouse Owns a Business?
Marriage can introduce additional tax-planning opportunities and considerations when one or both spouses are self-employed.
For example, you may want to evaluate:
Whether your business structure is still appropriate
Retirement contribution strategies for both spouses
Health insurance deductions and coverage
Estimated tax payments based on combined household income
Whether employing your spouse in the business makes financial and operational sense
How business losses may affect your joint tax return
If you both participate in a business, additional rules may apply depending on your business structure and state laws.
This is an area where personalized tax planning can be especially valuable.
8. A Few Other Things to Take Care of After the Wedding
Beyond choosing your filing status, there are several practical items worth addressing.
Update your name with Social Security. If you change your name, make sure your Social Security records match the name you'll use on your tax return.
Update your address with the IRS. If you've moved, consider submitting Form 8822 to keep your information current.
Review your health insurance. Marriage is generally a qualifying life event that allows you to make changes to your health insurance coverage. If you receive Marketplace subsidies, report your household changes promptly.
Review your retirement accounts and beneficiaries. Marriage is a good time to revisit your financial plans and beneficiary designations.
Consider existing tax debts. If either spouse owes back taxes, you'll want to understand how that could affect a joint refund. In some circumstances, injured spouse relief may protect the other spouse's portion of the refund.
And if you live in Oregon, don't forget that your state income taxes may need attention as well!
So, Is Married Filing Jointly Right for You?
For many couples, yes.
Filing jointly can provide meaningful tax advantages, simplify the filing process, and create opportunities for coordinated financial planning.
But every household is different.
Your income levels, business ownership, children, student loans, retirement savings, existing tax obligations, and financial goals can all influence which filing status makes the most sense.
The best time to think about your taxes isn't after the year ends. It's before you make financial decisions that could affect your tax bill.
Let's Talk About Your New Financial Chapter!
Getting married is an exciting milestone, and understanding how your taxes will change is one way to start your financial future together on the right foot.
At Casler Financial, we help individuals, couples, and small business owners understand their tax situations and identify opportunities to plan ahead.
Whether you're recently married, planning a wedding, or simply wondering whether filing jointly makes sense for your household, we're happy to help.
Book a 30-Minute Tax Advisory Session — $250
During your session, we can discuss your specific circumstances, review potential tax implications of marriage, and identify planning opportunities that may help you avoid surprises.
Because a little tax planning today can make a big difference tomorrow.
Disclaimer: This article provides general tax information and is not intended as individualized tax advice. Tax laws and filing requirements vary based on your circumstances and may change. Consult a qualified tax professional before making decisions about your specific situation.
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