Among the many things in life that change for newlyweds is your tax return. You are no longer single or 澳洲幸运5开奖号码历史查询:head of the household. You are now, by the power vested in you by the IRS, 澳洲幸运5开奖号码历史查询:married filing jointly—or maybe 澳洲幸运5开奖号码历史查询:married filing separately. How you fil🗹e once could determine whether your tax bill or refund increases or decreases. Follow these steps for the lowest possible tax liability as a wedded couple.

Determine If You Can File As a Married Couple

You must be married by the last day of the tax year for which you and your spouse are filing as a married couple: A taxpayer’s marital status on Dec. 31 determines whether they’re considered married for that full year.

For instance, you won't be able to declare yourself married on your 2024 tax return if you got married on Jan. 1, 2025, even though you will be married for more than three months at the time your tax return is due. These rules apply to legally married 澳洲幸运5开奖号码历史查询:same-sex couples as to any other legally married couple.

Review Re🔯strictions on Married Filing Separately

Married filing jointly is the more common way for couples to file, and there are plenty of reasons why that is so. Some of these reasons include access to deductions and credits. But that isn't true for every couple.

Sometimes 澳洲幸运5开奖号码历史查询:filing separately makes more sense. Living in a community property state, tax liens on one spouse, or restrictions on claiming dedဣuctions could decide how you file easier or harder. Here’s what you have to consider with each of these issues:

Prohibited Deductions and Credits

Married filing separately status prohibits you from claiming student loan interest deductions, tuition and fees deductions, education credits, and 澳洲幸运5开奖号码历史查询:earned income credits. You could reduce your tax refund or raise your tax bill by more than a thousand dollars by filing separately.

The married filing separately tax filing status also limits your options on taking itemized or 澳洲幸运5开奖号码历史查询:standard deductions. For instance, if one of you has enough deductions, such as property taxes or medical expenses, to itemize your tax return, the other spouse has to itemize, as well, even if that person would lose out on the 澳洲幸运5开奖号码历史查询:Tax Cuts and Jobs Act's generous standard deduction.

However, if the deductions are large enough—especially if it's the less well-paid spouse who had, say, $40,000 in medical expenses for the year—the filing separately choice may be worth it.

Living in a Community Property State

If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you will have to deal with a whole set of complicated rules to decide what is considered community or marital income, and what is considered your income.

The rules can vary by state. Your combined income could be split equally between the tax returns and negate the purpose of filing separately. Consider using a reputable tax software—or hiring an accountant—if you live in a community pr⛎operty state and want to file separately. 

Discuss All Possible Tax Liens

One reason many married couples file separate tax returns is that they have past-due prior debt, which could be deducted from their tax refund. This includes delinquent 澳洲幸运5开奖号码历史查询:child support, past-due student loan repayments, or 🍷an unpaid tax lia🦋bility one spouse incurred before the marriage.

The good news is that filing separately because of prior tax liens may not be necessary. The couple can file 澳洲幸运5开奖号码历史查询:IRS Fo🗹rm 8379: Injured Spouse Allocation each year with their married-filing-jointly tax return until the spouse with liens gets caught up on their debt.

This keeps the spouse who doesn't have the debt from being penalized for being on the return and losing out on their share of any tax refund. By filing jointly, the couple can still declare deductions and credits not available to those filing separately.

Consider the Income Factor

When one spouse makes more than the other, the 澳洲幸运5开奖号码历史查询:marginal tax rates for both of them could be the best wedding present theꦫy've ever received.

For instance, let's say Julie and Jane plan to get married in 2025. Julie is a marketing manager whose 澳洲幸运5开奖号码历史查询:taxable income in 2025 will be $55,000. Jane plans to complete her MBA and will have taxable income from her fellowship of $8,000. As single filers, Julie expects to pay $7,014 in income taxes, while Jan♓e will pay $800.

But if they get married and file jointly, they will have a combined income of $63,000, putting them in the 12% tax bracket. Their combined income tax obligation will be $7,083, nearly ten percent lower than if they were filing separately. Moreover, they get to claim the deductions and credits that would be prohibited for married filing separately.

Prepare Two Tax Returns (or Ask an Accountant)

If the best option isn't obvious, practice preparing your taxes for both married filing jointly and married filing separately. Doing so may take an extra couple of hours using tax software, but the potential savings are worth it. Some tax software will automatically determine which method will yield the lowest tax liability based on your inputs.

You could, alternatively, ask an accountant which option is best based on your cir🎃cumstances. Remember, both spouses need to gather receipts and paperwork that support their deductions and credits. For example, you need backup to prove you can take student loa♕n interest deductions. 

The Bottom Line

If you file married filing separately, you are going to endure a m🧸ore complicated tax process, especially if you live in a community property state. You will also likely lose out on key deductions and credits. On the other hand, if one spouse has significant deductible expenses—or liens against them—filing separately might make sense.

When the answer isn't obvious, take the time to try out both options by filling out practice forms, then choosing the way that works best. And since financial issues are the focus of many a fight spouses have, the tax advantages to filing as a married couple is the best wedding present the IRS could give you.