Love, Marriage, and Uncle Sam: How Getting Married Affects Your Taxes

After saying "I do," taxes might not be the first thing on your mind—but they should be on your checklist. Your new marital status can impact your tax situation, from filing status to potential deductions and credits.

To make your first tax season as a married couple smoother, we’ve outlined key steps to help you navigate the process with confidence.

Step 1: 

Check your withholding status at the beginning of each year or when your personal circumstances change — like after you’re married. The IRS Withholding Calculator is a good way to check your withholding and see if you need to submit a new Form W-4 to your employer to make any changes.

Step 2:

Marriage may also mean a change in your last name. If you legally change your name, it’s important to report that change to the Social Security Administration (SSA). If the name on your tax return does not match what is on file at SSA, it could delay any refund.

Step 3: 

If getting married means a change of your address, the IRS and U.S. Postal Service need to be updated. This is an easy change made by sending the IRS Form 8822, Change of Address. Also, be sure to notify the postal service to forward your mail by going online at USPS.com or visiting a local post office.

Step 4: 

If you and your new spouse both have jobs with benefits, you’ll need to assess how those benefits could be maximized for your new marriage status.  For example, if you both have single health insurance coverage through your employers, it may be better for one of you to switch to a family plan that covers both of you.  You’ll need to compare which health plan offers better coverage as well as the relative costs of single vs family coverage under the plan options.  Sometimes, you may find that it’s still advantageous to remain on your own single plans, depending on what portion of the health insurance premiums your respective employers pay.  It’s also a good time to review retirement saving plans to ensure that you’re setting aside enough so that you both can meet your collective retirement plans.

Step 5: 

Choose the best filing status that works for YOU. Your marital status on December 31 determines whether you’re considered married for that year. Generally, the tax law allows married couples to choose to file their federal income tax return either jointly or separately in any given year. Use the Interactive Tax Assistant to help determine what is best for your situation.

When it comes to wedding planning, details are important. If you need help planning your taxes for this new stage in your life, contact your CRI advisor today to make certain that your first tax season as a married couple goes smoothly! A little planning now can save you time, stress, and even money down the road.