If I Get Married in December, How Does It Affect My Taxes?

Getting married marks a significant life event that brings about many changes, including adjustments to your tax situation. When marriage occurs late in the year, such as in December, its impact extends to your taxes for the entire tax year. Understanding how this timing affects your tax filing status, overall tax liability, and necessary planning steps is important for managing your financial obligations effectively.

Determining Your Tax Filing Status

Federal tax law dictates your marital status for the entire tax year. If you are legally married on or before December 31st, the Internal Revenue Service (IRS) considers you married for that full tax year. This means that even a December marriage will affect your tax filing status for the full calendar year.

Once married, couples generally have two primary filing options: Married Filing Jointly (MFJ) or Married Filing Separately (MFS). MFJ involves combining both spouses’ incomes, deductions, and credits on a single tax return. This status is often advantageous for many couples, simplifying the filing process and frequently leading to a lower overall tax liability due to more favorable tax brackets and broader access to credits.

Conversely, Married Filing Separately requires each spouse to file their own individual tax return, reporting only their own income, deductions, and credits. While less common, this option can be beneficial in specific scenarios, such as when one spouse has significant itemized deductions, like substantial medical expenses. MFS might also be considered if there are concerns about shared financial liability for tax issues. Generally, however, filing separately can result in a higher combined tax burden and may restrict access to certain tax benefits.

Impact on Your Tax Liability

The choice between MFJ and MFS directly influences a couple’s overall tax liability through tax brackets, deductions, and credits. Tax brackets are structured differently for MFJ and MFS filers. When filing jointly, a couple’s combined income is subject to wider tax brackets, which can sometimes result in a “marriage bonus” if one spouse earns significantly less than the other. However, if both spouses earn high incomes, combining them might push their total into a higher marginal tax bracket, leading to a “marriage penalty.” For the 2024 tax year, tax brackets are adjusted for inflation, and the rates increase as a taxpayer’s income rises.

Regarding deductions, married couples can choose between the standard deduction or itemizing. For the 2024 tax year, the standard deduction for MFJ is $29,200. For MFS, the standard deduction is $14,600 per spouse. If one spouse chooses to itemize deductions when filing MFS, the other spouse must also itemize, even if their individual itemized deductions are less than the standard deduction amount. This rule can significantly impact the tax benefit received, as it might prevent a spouse from taking advantage of the standard deduction if their itemized deductions are minimal.

Tax credits also vary significantly based on filing status. Common tax credits, such as the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and education credits, have different eligibility requirements or limitations for MFS filers. While the Child Tax Credit can be claimed by MFS filers, the income phase-out thresholds are lower compared to MFJ filers. For 2024, the maximum CTC is $2,000 per qualifying child.

The Earned Income Tax Credit is generally unavailable for those filing MFS, with limited exceptions. Education credits, such as the American Opportunity Tax Credit and the Lifetime Learning Credit, typically cannot be claimed if filing MFS. These restrictions can lead to a higher overall tax liability for couples choosing to file separately.

Key Considerations for Tax Planning

Newly married couples, especially those married in December, should adjust their tax planning for the upcoming tax year. An important action is to review and update their W-4 forms with their employers. The W-4 form determines the amount of federal income tax withheld from paychecks, and without updating it to reflect a new marital status and combined household income, couples risk under-withholding or over-withholding. The IRS Tax Withholding Estimator is a valuable online tool that can help determine the appropriate withholding amount to prevent an unexpected tax bill or a significantly large refund.

Another practical consideration involves name changes. If either spouse has legally changed their name, it is important to update this information with the Social Security Administration (SSA) prior to filing taxes. Ensuring that the name on tax documents matches the SSA records helps prevent processing delays with the IRS.

Gathering all necessary financial documents is also crucial for accurate tax preparation. This includes W-2 forms from all employers, 1099 forms for other types of income, and records pertaining to any deductions or credits claimed. Having these documents readily available for both individuals before combining them for a joint return, or preparing separate returns, streamlines the filing process.

Finally, while federal tax rules apply universally, state tax laws can vary significantly. Couples should investigate their state’s income tax requirements for married individuals, as some states may not recognize the same filing statuses or offer the same deductions and credits as the federal system. Understanding these state-specific nuances helps ensure comprehensive and compliant tax planning.