Do You Get a Tax Credit for Getting Married?

While no direct tax credit exists for getting married, the act significantly changes a couple’s tax situation. Many individuals inquire about a specific “marriage tax credit,” yet the tax system does not offer such a benefit. Instead, marriage impacts tax obligations through changes in filing status, deductions, and income thresholds. This guide explores how marriage influences federal income taxes, including potential benefits and disadvantages.

No Direct Marriage Tax Credit

There is no specific federal tax credit solely for getting married. The notion of a “marriage tax credit” is a common misunderstanding. People often confuse the general tax implications and adjustments that occur after marriage with a direct credit.

The Internal Revenue Service (IRS) does not provide a specific financial incentive or credit for marital status. Instead, the tax code reconfigures how a couple’s combined income and deductions are treated. Any tax advantages or disadvantages arise from these structural changes, not from a singular credit.

Impact of Marriage on Tax Filing

Marriage shifts how individuals file taxes by altering available filing statuses. Married couples generally choose between “Married Filing Jointly” (MFJ) or “Married Filing Separately” (MFS) for federal income tax purposes. The chosen status influences tax rates, eligibility for various tax benefits, and deduction amounts.

Most married couples opt for Married Filing Jointly, which offers more tax advantages and simplifies filing with a single return combining both spouses’ incomes, deductions, and credits. For the 2024 tax year, the standard deduction for joint filers is $29,200, which is twice the amount for single filers. This larger standard deduction can reduce a couple’s taxable income.

Alternatively, couples can choose Married Filing Separately, where each spouse files their own tax return. If one spouse itemizes deductions, the other must also itemize, rather than taking the standard deduction. This status generally results in fewer tax benefits, as many deductions and credits are reduced or unavailable compared to filing jointly. For instance, certain education credits and the student loan interest deduction are not allowed when filing separately.

The combination of incomes under the MFJ status can affect the tax bracket a couple falls into. While tax brackets for married filing jointly are generally double those for single filers across most income levels, this is not always true for the highest income brackets. Income thresholds for various tax credits, such as the Child Tax Credit, also differ for married filers. For example, the Child Tax Credit begins to phase out for Married Filing Jointly at $400,000, while for other filers, it starts at $200,000.

Understanding the Marriage Penalty and Bonus

A “marriage penalty” or “marriage bonus” describes how a couple’s combined tax liability changes after marriage compared to if they remained single. These outcomes are effects of the progressive tax system’s structure, arising from how combined incomes interact with tax brackets, standard deductions, and income phase-outs for various tax benefits.

A marriage penalty occurs when a married couple pays more in taxes filing jointly than they would as two single individuals. This often arises when two high-income earners with similar salaries marry. Their combined income can push them into a higher tax bracket or cause them to hit income phase-outs for deductions and credits sooner. For instance, while most tax brackets for married couples are double those for singles, the highest marginal tax bracket (37% for 2024) does not have a threshold that is exactly twice the single threshold, which can contribute to a penalty for very high earners. Eligibility for certain benefits like the Earned Income Tax Credit (EITC) can also be reduced or eliminated for low-to-moderate income couples when combined income exceeds limits.

Conversely, a marriage bonus benefits couples where one spouse earns significantly more than the other, or one spouse has little to no income. In these scenarios, filing jointly can result in a lower combined tax bill than if they remained single. The higher earner’s income can be “pulled down” into lower tax brackets when combined with a lower or no-income spouse, leading to a lower overall average tax rate.

Post-Marriage Tax Planning Steps

After getting married, couples should take several proactive steps to manage their tax situation effectively. First, review and update Form W-4, Employee’s Withholding Certificate, with their employers. This form dictates how much federal income tax is withheld from each paycheck. Adjusting it for the new marital status and combined income can prevent under- or over-withholding. If both spouses work, they should coordinate their W-4s, potentially using the IRS Tax Withholding Estimator.

Second, ensure personal information is current with relevant government agencies. If a name change occurred due to marriage, report this to the Social Security Administration (SSA) before filing taxes. The name on a tax return must match the name on file with the SSA to avoid processing delays or issues with refunds. Updating address information with the IRS and U.S. Postal Service is also recommended if a move occurred.

Third, maintain thorough financial records as a married couple. This includes documentation for all income sources, deductions, and credits claimed on a joint return. Finally, seeking guidance from a tax professional is a prudent step, especially for couples with complex financial situations. A professional can provide personalized advice and help determine the most advantageous filing strategy for their specific circumstances, whether filing jointly or separately.