Getting Married, how to file

[RMG1119]

Hello! 

My fiancé and I are getting married in 2024 and starting new jobs. His income would put him in the 37% tax bracket, while mine would be in the 24% bracket for married filing separately. If we filed as married filing jointly, we'd likely be in the 35% bracket. I saw in one of the other posts that there are many benefits when it comes to deductions for married filing jointly. Do you think these benefits would outweigh the increase in tax to my own income or do you have any recommendations on how to determine the best way to file? 

Thank you!

[MarianneK]

Hello RMG1119,   

Thank you for your question.   Congratulations on getting married!!   

Since you are not getting married until 2024, you have a whole tax year to plan.   It's confusing but in 2024 we actually file 2023 taxes.   

Generally speaking, it is usually best to file MFJ (married filing joint).  There is a tax benefit.   Some married couples choose to file separately for other reasons such as, one spouse has a debt, or for student loan repayment calculations.   

Advantages for filing a MFJ return: certain credits are available if you qualify, more favorable tax rates, higher standard deduction.   

Disadvantages for filing MFS (married filing separate): loss of certain credits, any social security income is automatically taxed at 85%, lower standard deduction, any capital losses are limited to a $1500 carryover.   

In my years of preparing taxes, I've only seen 1 or 2 times when it was beneficial for spouses to file separately.   That happened when one spouse made $100,000 and the other made $10,000.   

I may suggest that you fill out your taxes both ways to see which is better.   I highly suspect that MFJ will be your best filing situation.   

Here is an article for your review.  

Should you and Your Spouse File Taxes Jointly or Separately