Will getting married be a tax benefit

[Tiffani_Allen]

My boyfriend and I would like to marry Dec 2023. We want to make sure this won't be detrimental to us. How can we know if this will put me in a higher tax bracket, or put him in a lower tax bracket if we marry file jointly?

[xmasbaby0]

If you were legally married at the end of 2023 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $27,700 (+$1500 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...

[kmartin8]

Hi Tiffani! 

Congrats on the upcoming wedding!  If you marry before the end of the year, you are considered married for the entire year. You would be able to file married filing jointly or married filing separately. 

If one of you makes significantly more than the other, combining your incomes on a joint return could pull some of the higher earner's income into a lower tax bracket. This is often called the "marriage bonus".

On the other hand, if your incomes are relatively equal, it may not be as favorable to combine incomes.  The best way to preview what it will be like to file together is to use our Refund Calculator - How can I compare Married Filing Jointly with Married Filing Separately?  

Marriage can be beneficial taxwise. One benefit is that married couples who file jointly can get higher breaks than they did when they were single. For instance, the student loan interest deduction and other credits have income phaseout limits. If your income is over those levels, you lose some of the credit. The limits are based on your filing status and married filing jointly comes with higher limits. 

Filing separately is usually not advantageous in most cases. It limits some deductions. An example would be the student loan interest deduction I mentioned above. It isn't available if you file separately. 

This is a great resource - Getting Married: What Newlyweds Need to Know