Getting married impacts almost every aspect of your life, and your taxes are no exception. The good news? Marriage can unlock significant tax benefits when you plan strategically. This guide will break down everything married couples need to know about filing taxes, from choosing the right filing status to maximizing deductions and credits.
Looking for personalized advice when it comes to the tax benefits of marriage? The team at ARQ Wealth is here to help. Call us at (480) 214-9572 for a free consultation on optimizing your tax strategy.
Understanding How Marriage Affects Your Taxes
One of the first questions newlyweds ask is: How does marriage affect taxes? The answer depends on several factors, including your combined income, deductions, and filing status.
When you get married, the IRS gives you two options when it comes to your tax filing status:
- Married Filing Jointly: You and your spouse combine all income and deductions on one tax return
- Married Filing Separately: You and your spouse file individual tax returns
Your marital status on December 31st determines your filing status for the entire tax year. So if you got married on December 29th, congratulations, the IRS considers you married for the full year.
Most married couples benefit from filing jointly, but there are specific situations where filing separately makes sense. Understanding the difference is crucial to maximizing your tax deductions and tax refund.
Married Filing Jointly vs. Separately: Which Is Right for You?
Choosing between married filing jointly or married filing separately is one of the most important tax decisions you’ll make as a couple.
Benefits of Married Filing Jointly
Filing jointly typically offers the most tax advantages for married couples, including:
- Higher Standard Deduction: In 2025, married couples filing jointly get a standard deduction of $31,500, compared to $15,750 for married filing separately. These deductions are set to increase in the 2026 tax year to $32,200 for joint filers and $16,100 for married filing separately.
- Lower Tax Brackets: Joint filers often pay less in taxes due to more favorable income thresholds.
- Eligibility for More Tax Credits: Many credits are only available or have higher limits for joint filers, including the Earned Income Tax Credit, education credits, and adoption credits.
- Simplified Filing: One tax return means less paperwork and lower preparation costs.
For most couples, filing jointly typically results in a lower overall tax bill and provides access to certain tax breaks that aren’t available when filing separately. However, it’s always best to speak with a tax planning expert to fully understand the best filing status for you.
When Filing Separately Makes Sense
Can you file separately if married? Yes, and here are situations where it might be advantageous:
- Significant Medical Expenses: If one spouse has high medical bills, filing separately may help that spouse exceed the 7.5% adjusted gross income (AGI) threshold for deductions.
- Income-Driven Student Loan Repayment: Filing separately can lower monthly student loan payments for some income-driven repayment plans.
- Liability Concerns: If you’re concerned about your spouse’s tax compliance, filing separately protects you from their tax issues
- Itemized Deductions: In rare cases, filing separately allows one spouse to itemize while the other takes the standard deduction.
ARQ Wealth Tip: Be sure to run the numbers for both scenarios before making a decision. A financial advisor can help you calculate your tax liability under both scenarios to determine which filing status saves you the most money.
Key Tax Benefits of Marriage
Understanding the tax benefits of marriage helps couples plan strategically and keep more of their hard-earned money. Here are the most valuable benefits:
1. The Marriage Bonus
Many two-income couples experience what’s called a “marriage bonus.” The marriage bonus is when you pay less in taxes as a married couple than you would as two single filers. This is especially common when:
- One spouse earns significantly more than the other
- Your combined income falls into a lower tax bracket
- You qualify for credits unavailable to single filers
For example, if one spouse earns $150,000 and the other earns $40,000, filing jointly often results in substantial tax savings compared to filing as single individuals.
2. Gift Tax Benefits
Married couples can give each other cash gifts each year without triggering a gift tax. You can give up to $19,000 per person (in 2024-2025) without filing a gift tax return, and spouses can combine this limit to give up to $38,000 per person together.
3. Estate Tax Benefits
The unlimited marital deduction allows you to transfer an unlimited number of assets to your spouse during your lifetime or at death without estate or gift tax consequences. This powerful benefit helps couples preserve wealth for the next generation.
4. IRA Contributions and Benefits
A working spouse can contribute to an IRA for a non-working or low-earning spouse through a spousal IRA. This allows couples to double their retirement savings even if only one person has earned income.
5. Capital Gains Exclusion
When selling your primary residence, married couples filing jointly can exclude up to $500,000 in capital gains from taxation, double the $250,000 exclusion for single filers.
Smart Tax Planning Strategies for Married Couples
Filing taxes when married requires strategic planning throughout the year, not just in April. Here are proven strategies to maximize your tax benefits:
Balance Your Income
If you’re a dual-income household, consider how your combined earnings affect your tax bracket. Sometimes it may make sense to:
- Maximize retirement contributions to reduce taxable income
- Time bonuses or stock option exercises strategically
- Balance or split your income between spouses if one is in a lower tax bracket
Maximize Retirement Contributions
Married couples have more opportunities to save for retirement while reducing their tax bill:
- Each spouse can contribute up to $23,500 to a 401(k) in 2025 (plus $7,500 catch-up if over 50)
- You can also both contribute to IRAs for additional tax-advantaged savings
- You may want to consider a spousal IRA if one partner doesn’t work
- Explore Roth conversions during lower-income years
ARQ Wealth Tip: Contributing to tax-deferred accounts like 401(k)s and traditional IRAs can significantly reduce your current tax burden while building long-term wealth.
Learn more: 10 Tax-Efficient Retirement Withdrawal Strategies
Coordinate Your Deductions
When filing jointly, it can also be advantageous to coordinate your deductions in order to maximize tax benefits. This includes taking steps like:
- Pooling charitable contributions to exceed the standard deduction threshold
- Combining medical expenses to meet the 7.5% AGI requirement
- Timing large deductible expenses to gain tax advantages
Review Your Withholding
After marriage, many couples discover they’re either over-withholding or under-withholding taxes from their paychecks. You can consider updating your W-4 forms to:
- Avoid owing money at tax time
- Prevent overpaying and lending the IRS interest-free money
- Help ensure accurate withholding based on your combined income
Leverage Tax Credits
Married couples filing jointly often qualify for valuable tax credits that can dramatically reduce your tax bill. These include:
- Child Tax Credit: Up to $2,200 per qualifying child
- Child and Dependent Care Credit: For childcare expenses
- Earned Income Tax Credit: For lower-to-moderate income families
- Education Credits: These include American Opportunity and Lifetime Learning Credits
- Retirement Savings Contributions Credit: For lower-income savers
Common Tax Mistakes Married Couples Make
While getting married offers plenty of opportunities, it also makes the filing process slightly more complicated. Here are a few common pitfalls to avoid when filing taxes as a married couple:
1. Not Running Both Scenarios
Some couples assume that filing a joint tax return is always better and never calculate their taxes under both filing statuses. Always run the numbers for both scenarios (filing jointly vs filing separately) to confirm which option saves you more money.
2. Forgetting to Update Names
After marriage, failing to update your name with the Social Security Administration can cause tax filing delays and rejected returns. Make this update a priority after your wedding day.
3. Overlooking Estimated Tax Payments
If both spouses are self-employed or have significant investment income, you may need to make quarterly estimated tax payments. Missing these payments can result in penalties, accrued interest, or substantial lump sum tax payments.
4. Ignoring State Tax Implications
Some states have different rules for married couples. Don’t assume your state tax situation mirrors your federal filing status.
5. Missing the Timing Window
Getting married late in the year? Remember that your filing status is determined by your marital status on December 31st. This can significantly impact your tax planning strategy.
Optimize Your Tax Strategy With ARQ Wealth
Understanding the tax benefits of marriage is just the beginning. Implementing a comprehensive tax strategy that evolves with your life changes, from marriage to buying a home, having children, and planning for retirement, requires ongoing planning and expertise.
Tax laws change frequently, and what worked last year might not be optimal this year. That’s where working with a trusted financial advisor makes all the difference. At ARQ Wealth, we help married couples navigate complex tax decisions, adjust their strategy to account for economic risks, and implement year-round tax planning that keeps more money in your pocket.
Schedule a free consultation with ARQ Wealth today or call us at (480) 214-9572 to start optimizing your federal income tax strategy as a married couple.