How marriage affects taxes?

Marriage is a big decision; from the first date to the vows to the intertwining of two different families, marriage has far-reaching impacts. Marriage also affects finances for most couples. Financial obligations like utility bills and rent combine along with income and savings. Marriage also impacts taxes in multiple ways.

In the United States, your marital status as of December 31^st of the year determines whether or not you’re able to file as a married person. The increased income as a couple may mean that more taxes are paid in, but it can also mean that you have new credits or deductions, depending on your situation. The way you file as a married person can change, depending on your preferences and unique situation. You may file as “married filing jointly” or “married filing separately.” Many couples file together or jointly because it’s simpler to use one form and go through the process once.

It’s important to discuss finances with your partner before saying, “I do,” however. Many couples avoid talking about financial responsibilities and obligations, their credit or how they use it, financial goals, and personal views on finance, which results in difficult and tense conversations post-vows. By having these important discussions before marriage, you can get a feel for your partner’s views on money, their personal financial ethics, and the priority they place on certain aspects of finances like saving versus spending, as well – potentially avoiding major issues in the future.

What is best for you and your tax situation is largely dependent on what state you live in, as many states have state-level taxes to be paid or considered. It will also depend on technicalities like income level, type of work, savings, retirement accounts, and more. The best way to determine how to file is to visit with a tax professional in your area to discuss your unique situation and get advice on the next steps. While accountants and tax preparers typically charge for their services, you may find free workshops and clinics through your local government, public library, or senior citizen’s center in some locations.