If you recently got married, you might have spent a lot of time planning a ceremony, reception, or honeymoon. As a newlywed, have you considered how your new life change will affect your taxes this year? Here is a newlywed’s guide to taxes.
Name and Address Change
Before we get to the obvious changes like filing status, one of your first actions should be to report your name change to the Social Security Administration (SSA) if necessary. The name on your tax return must match the one on file with the SSA. If it doesn’t, it can cause delays in processing your return or refund. You’ll also want to make sure you update the IRS and USPS of a change in address if paper mail is your preference for correspondence or refund payment.
Withholding
Adjusting your tax withholding with your employer is not necessary. However, it can help avoid any overpayment or underpayment in taxes throughout the year. You can use the IRS Online Withholding Calculator to find out how much you should withhold. Once you determine the best option for you and your spouse, you should submit a new FormW-4 to your employer.
Tax Brackets
Getting married could change your tax bracket if you file together since your income is combined with your new spouse’s. Here are the tax brackets for 2024.
Married Filing Jointly
| Rate | Taxable Income | Tax |
| 10% | Income up to $23,200 | 10% of the taxable income |
| 12% | Income between $23,201 and $94,300 | $2,320 plus 12% of the excess over $23,200 |
| 22% | Income between $94,301 and $201,050 | $10,852 plus 22% of the excess over $94,300 |
| 24% | Income between $201,051 and $383,900 | $34,337 plus 24% of the excess over $201,050 |
| 32% | Income between $383,901 and $487,450 | $78,221 plus 32% of the excess over $383,900 |
| 35% | Income between $487,451 and $731,200 | $111,357 plus 35% of the excess over $487,450 |
| 37% | Income over $731,200 | $196,670 plus 37% of the excess over $731,200 |
Married Filing Separately
| Rate | Taxable Income | Tax |
| 10% | Income up to $11,600 | 10% of the taxable income |
| 12% | Income between $11,601 and $47,150 | $1,160 plus 12% of the excess over $11,600 |
| 22% | Income between $47,151 and $100,525 | $5,426 plus 22% of the excess over $47,150 |
| 24% | Income between $100,526 and $191,950 | $17,169 plus 24% of the excess over $100,525 |
| 32% | Income between $191,951 and $243,725 | $39,1101 plus 32% of the excess over $191,150 |
| 35% | Income between $243,726 and $365,600 | $55,679 plus 35% of the excess over $243,725 |
| 37% | Income over $365,600 | $98,335 plus 37% of the excess over $365,600 |
Filing Status
You might be used to filing single each tax season. However, as a newlywed that will no longer be an option. You’ll either file married filing jointly or married filing separately. Most couples will opt for a joint return as it opens access to more tax breaks and sometimes a better tax rate. Every situation is different. Your best bet is to prepare your tax return both ways to see which has a better outcome.
Standard Deduction
Married couples filing jointly can claim one of the largest standard deductions in 2024 at $29,200 if you are both 65 and under. If you file separately, you can only claim the $14,600 standard deduction in 2024. You should note that if one spouse opts to itemize, both of you must itemize, so you should determine which method would result in a lower taxable income.
Tax Credits and Deductions
As mentioned, filing separately eliminates eligibility for some tax credits. For example, couples married filing separately may not claim the Earned Income Tax Credit (EITC) or education credits like the American Opportunity Credit or Lifetime Learning Credit. They might be able to claim the Child and Dependent Care Credit if they meet certain requirements. They also cannot deduct student loan interest. On the other hand, married couples filing jointly have extra tax perks to look forward to. For example, if you are not working you cannot contribute to an IRA account if you are single, but you can if you are married and use your spouse’s income. You can also take advantage of flexible spending accounts (FSAs) and lower health care expenses. You can consult with a tax preparer for more tax breaks.
Tax Help for Newlyweds
Taxes are sure to be the furthest thing from your mind after getting married. However, it’s critical to remember that as long as you are legally married by December 31st, the IRS considers you to be married for the full tax year. The sudden change in rules may be intimidating and brand new to you, but there are always experts who are ready to help. We hope this newlywed’s guide to taxes gave some clarity. Optima Tax Relief is the nation’s leading tax resolution firm with over a decade of experience helping taxpayers with tough tax situations.
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