IRS Tax Update: Getting married is not just a significant personal milestone; it can also have a major impact on your taxes. If you’re planning to get married in 2025, it’s important to understand how this will affect your tax refund. There are numerous factors that the IRS takes into account when you file your taxes as a married couple, including your filing status, eligibility for tax credits, and how your combined incomes are taxed. Understanding these aspects will help you optimize your tax situation and ensure that you make informed decisions when filing your 2025 taxes.
This guide will provide you with the most current IRS tax updates for 2025, clear explanations of how marriage influences your taxes, and actionable steps to ensure that you maximize your refund. We’ll cover filing status, tax brackets, available credits, common pitfalls to avoid, and much more.
IRS Tax Update
| Key Information | Details |
|---|---|
| Tax Filing Status | Married couples can file jointly or separately. Filing jointly usually offers more benefits. |
| Standard Deduction | The 2025 standard deduction for married couples filing jointly increases to $30,000. |
| Tax Brackets | Higher income thresholds for married couples in the 2025 tax brackets, potentially lowering tax rates. |
| Tax Credits | Eligibility for tax credits, including Child Tax Credit and Earned Income Tax Credit, may increase. |
| Marriage Penalty | In some cases, marriage may push you into a higher tax bracket, potentially increasing your tax liability. |
| Withholding Changes | Newlyweds should adjust their W-4 withholding to avoid underpayment or overpayment of taxes. |
| Resource Links | IRS Filing Status |
Marriage can significantly impact your tax refund, but with the right knowledge, you can navigate the changes and optimize your tax situation. Whether you’re filing jointly or separately, understanding the impact of marriage on your tax bracket, standard deduction, and available credits is key to ensuring a smooth tax filing process. By following the practical advice in this guide, you can ensure you’re making the most of your new marital status when it comes to taxes.
How Getting Married Affects Your Tax Refund
Marriage can change your tax situation significantly. The most notable changes occur in your filing status and tax brackets, which are key factors in determining your tax liability and refund. In 2025, married couples will benefit from higher standard deductions, tax brackets, and eligibility for certain tax credits. However, these changes can also create challenges, particularly for couples with high incomes.
Married Filing Jointly vs. Married Filing Separately
Married Filing Jointly (MFJ)
The majority of married couples opt to file jointly. This status offers the most significant benefits, including a higher standard deduction and better access to various tax credits. For 2025, the standard deduction for married couples filing jointly will increase to $30,000, a substantial boost from the $29,200 in 2024. This deduction helps reduce your taxable income, which can lead to a lower tax liability.
Moreover, filing jointly allows you to take advantage of higher income thresholds in the IRS tax brackets. For instance, you can earn up to $206,700 before being taxed at the 24% rate (as opposed to $103,350 for single filers). This can be particularly beneficial for couples where both partners work, as they are less likely to face the “marriage penalty,” which occurs when filing jointly pushes them into a higher tax bracket.
Married Filing Separately (MFS)
While filing jointly is usually more advantageous, some couples may choose to file separately due to specific financial circumstances. This status is typically beneficial for couples where one spouse has significant medical expenses or other deductible expenses that could be higher under the separate filing method.
However, filing separately also has drawbacks. For example, the standard deduction for those filing separately is half of what it is for joint filers (about $15,000 for 2025). Additionally, many tax credits are unavailable to those who file separately. This includes the Child Tax Credit and Earned Income Tax Credit (EITC), both of which can significantly increase a refund. Couples filing separately may also face higher overall taxes, as they are subject to lower income thresholds in the tax brackets.
Tax Bracket Adjustments
One of the key advantages of being married is that couples filing jointly benefit from higher income thresholds for tax brackets. Here is a breakdown of the 2025 IRS tax brackets for married couples filing jointly:
- 10% on income up to $22,000
- 12% on income from $22,001 to $89,450
- 22% on income from $89,451 to $206,700
- 24% on income from $206,701 to $416,700
- 32% on income from $416,701 to $522,300
- 35% on income from $522,301 to $626,100
- 37% on income over $626,100
For single filers, the 24% bracket begins at $103,350, half of the threshold for married couples. This is an important consideration for couples with dual incomes, as they have more room to earn before hitting higher tax rates. However, if both spouses earn high salaries, it’s important to analyze whether filing separately might lead to lower overall taxes.
Key Tax Credits and Deductions Available to Married Couples
Getting married opens the door to various tax credits that can increase your refund. Some of the most valuable credits include:
Child Tax Credit (CTC)
The Child Tax Credit continues to be a significant benefit for families with children. In 2025, the refundable portion of the credit will be up to $1,700 per qualifying child. The full credit is available to married couples filing jointly who earn less than the income phase-out thresholds. This credit can substantially reduce your tax liability, and in some cases, result in a refund.
Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) is another valuable benefit for married couples with lower incomes. In 2025, the maximum EITC for a married couple with three or more children can be as high as $8,046. The amount of the credit depends on your income level, and it phases out as your income increases. This credit is refundable, which means if it exceeds the amount of tax you owe, you can receive the difference as a refund.
Adoption Credit
If you adopt a child in 2025, you may be eligible for the Adoption Credit, which can be up to $17,280 per child. This credit helps offset the costs associated with adoption, such as adoption fees, legal expenses, and travel costs. The amount of the credit is subject to income limits, so higher-income families may receive a reduced credit.
Potential Pitfalls: Marriage Penalty and Other Considerations
While marriage generally provides tax benefits, there are some situations where it can have unintended consequences, such as the marriage penalty. This occurs when both spouses earn high incomes, and filing jointly pushes them into a higher tax bracket. In these cases, they may end up paying more taxes than if they had filed separately.
Additionally, failure to adjust your withholding after marriage can result in underpayment or overpayment of taxes. This can cause frustration when it’s time to file your return and may delay your refund. It’s always a good idea to review your W-4 withholding and use the IRS Tax Withholding Estimator to ensure you’re withholding the correct amount.
Consider Working with a Tax Professional
Tax laws can be complicated, especially for newlyweds navigating the impact of marriage on their taxes. If you are unsure about whether to file jointly or separately, or if you have a more complex financial situation, it’s a good idea to consult a tax professional. They can help you understand your specific circumstances, recommend the best filing status, and ensure that you’re taking advantage of all available credits and deductions.
Practical Steps for Newlyweds
Once you’re married, take the following steps to ensure your tax filings are accurate:
- Update Your Name and Address – If you change your name, report it to the Social Security Administration (SSA) to avoid issues with your tax return. Also, use Form 8822 to update your address with the IRS.
- Adjust Your W-4 Withholding – After marriage, your Form W-4 may need to be updated to reflect your new marital status. This will help ensure the correct amount of taxes are withheld from your paycheck.
- Evaluate Filing Status – Determine if filing jointly or separately is best for your situation. Most couples benefit from filing jointly, but it’s worth reviewing your finances to see which option offers the most savings.
- Consult a Tax Professional – If you’re unsure about how marriage impacts your taxes, a tax professional can provide personalized guidance and help you navigate the complexities of your tax return.
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FAQs About Marriage and Taxes
Q1: Should we file jointly or separately?
For most married couples, filing jointly provides the best tax advantages, but if one spouse has substantial deductions (like medical expenses), filing separately may be beneficial. Consult with a tax professional to assess your situation.
Q2: Will getting married put me in a higher tax bracket?
While getting married may push both spouses into a higher tax bracket, the higher income thresholds for married couples filing jointly typically provide more room to earn before reaching higher tax rates. However, if both spouses earn high incomes, it’s worth evaluating whether filing separately would result in a lower tax liability.
Q3: What happens if we don’t adjust our withholding after marriage?
Failing to update your W-4 withholding can result in underpayment or overpayment of taxes. This may lead to either a smaller refund or a larger tax bill. It’s important to adjust your withholding after marriage to avoid surprises at tax time.
