So, I hear you got married. Congrats! And you’re filing your taxes jointly for the first time, and want to know more about how to do that! Is that right? Just so you know, you don’t have to file jointly, but those romantics at the IRS set up some great tax breaks for marriage. First, by filing jointly you get double the deduction in half the time. So, what the heck does that mean? I’ll break it all down for you.
One Tax Return
This year, you get to file together, and only do one tax return! So half the time, plus some good ol’ taxes quality time. Another perk that is commonly cited is you get to double your tax deduction. Last year the single standard deduction was $12,000, and, actually this year it’s actually higher: $12,400. But, now that two have become one, your deduction has too! Filing as a couple doubles your standard deduction to $24,800.
Doubling Your Deduction
So, what does that mean and why is it important? Basically, your tax return is a report card to the government. The government needs to know what you know about your income, because your income is taxed. But – the government doesn’t get to tax all of your income. In most cases, especially if you don’t have children, having this higher deduction will give you lower tax liability – which we want! Another cool thing is that joint filers have different thresholds for certain deductions and tax breaks, and in many cases, have a better chance at qualifying.
Other Credits
You may also qualify for some other credits as a married couple. There’s a Child and Dependent Care Tax Credit, and separately, an adoption credit. Do you have any kids? Like the Earned Income Tax Credit, since you have no kids, you’d be eligible if you’ve made, after taxes, less than $21,710. Did you and the hubs make less than that last year? Okay! So no extra credits for you… but glad we checked!
The Set Up
First thing’s first… you probably told your family that you were getting hitched, but you also have to tell Uncle Sam… and you do that by filing a form, Form 8822, to be exact. Have you done that? If not, do it now! Next! Did you take your spouse’s last name? Okay, so the Social Security Administration isn’t as romantic as the IRS and you can get your tax refund withheld if the name associated with your Social Security number matches the name on your tax forms. To tell the Social Security Administration, there’s a…you got it…another form: Form SS-5. Did you fill that out? If not, do it now!
Time to File
Once you’ve done those two things, you’re ready to file as a married couple! It’s actually the same form as if you’re filing as “single,” you’ll just notice there’s a box for your spouse’s name. And voila! All that said, there are some rare-ish instances where it makes more sense to file separately – like if one of you is in student or medical debt, or if you have kids, in some cases. Use this calculator from the Tax Policy Center so you can double check!
It pays to get married, so it’s definitely in your best interest to file jointly! But first… you need to do a little paperwork. It’s not that hard and filing jointly doesn’t have to be a complicated thing. You can even make it a fun newlywed project.