When two people get married, life changes in many ways — and so do their taxes. While love may be the main reason for tying the knot, newlyweds often discover that their financial situation transforms significantly once they file their first joint return. Understanding these changes can help couples avoid surprises and take advantage of potential savings.
Filing Status and Tax Brackets
The first big change happens with filing status. Married couples can now file jointly or separately. Most find that filing jointly results in a lower overall tax bill because the IRS provides wider tax brackets and higher income thresholds before moving into higher rates. However, in some cases — such as when one spouse has significant medical expenses or outstanding student loans — married filing separately might make more sense.
Standard Deduction and Credits
Marriage can also affect deductions and credits. For 2025, the standard deduction for married couples filing jointly is nearly double that of single filers. This means many couples no longer need to itemize to benefit. Additionally, tax credits like the Earned Income Tax Credit (EITC) and Child Tax Credit can change depending on the couple’s combined income. Some couples may qualify for new credits, while others may phase out of eligibility due to higher joint earnings.
Name Changes and Withholding Adjustments
Another often-overlooked step after marriage is updating tax records. If a spouse changes their last name, the Social Security Administration must be notified before filing. Couples should also review and update their W-4 forms with employers to ensure the correct amount of tax is withheld from their paychecks. Failing to do so can lead to unexpected tax bills at filing time.
Combining Finances and Planning Ahead
Getting married often means combining bank accounts, retirement plans, and investment portfolios. With this comes a need for new financial planning. Contributions to IRAs and 401(k) accounts, as well as eligibility for Roth IRAs, can be affected by the couple’s joint income. Coordinating retirement and savings strategies helps maximize benefits and reduce taxes over the long term.
Estate and Gift Considerations
Marriage also opens up important estate planning advantages. Spouses can transfer unlimited assets to each other without paying federal gift taxes, and they can inherit assets tax-free. Updating wills, beneficiaries, and life insurance policies ensures both partners are protected and their estate plans reflect their new marital status.