How to File Your Taxes Jointly for the First Time
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When you decided to say “I do”, you may not have considered the future tax implications of getting married. Marriage changes your taxes — from the credits and tax deductions you can claim, to certain tax breaks that come with filing jointly.
However, not everyone chooses to file their taxes together. Depending on your personal circumstances, you may find that filing separately serves each of you better.
Here’s a tax crash course for newlyweds who are filing together for the first time this coming tax season.
Married filing separately vs. jointly
Newlyweds must decide whether they will file as either “married filing jointly” or “married filing separately”. Once married, you can no longer file as single.
The Internal Revenue Service (IRS) will treat you as married for the entire tax year, regardless of your actual wedding date. So even if you get married on December 31, you’ll be considered married for the entire year when it comes to filing taxes.
There are many disadvantages to filing separately. Higher tax rates will come into play at lower income levels and your standard deduction will drop dramatically.
But you may find that filing separately benefits you more in certain situations. For example, it may make financial sense if you or your spouse owes child support from a previous marriage or owes the IRS back taxes.
It may also work to your advantage if you owe a massive amount of student loan debt, make a lower income than your spouse, and are on an income-driven repayment (IDR) plan. The federal government uses your tax information to calculate your IDR monthly payments, so you could end up with a significantly lower payment by filing separately.
Pros and cons of filing jointly
For most couples, filing jointly has the most benefits. Here are a few reasons to file your taxes together:
You’ll have a higher standard deduction. You can double your standard deduction by filing jointly. The 2019 standard deduction for married filing jointly is $24,400. It’s only $12,200 for married filing separately.
You can claim more tax credits. You may qualify for tax credits related to education, child and dependent care, and adoption expenses. You won’t be eligible for these tax credits if you’re married filing separately.
You only have to submit one tax return. This can save you time and money since you won’t be filing two separate returns.
The primary drawback to filing jointly is that you both will be held responsible for errors or inaccuracies. Both spouses must report all income, deductions, and credits on the same tax return. Therefore, if you get audited by the IRS, you’ll both be on the hook for any penalties and interest that may be assessed.
How to file taxes together
The steps to file jointly are similar to those required to file as single.
You’ll need to notify the IRS if you’ve changed addresses. You’ll also need to update your information with the Social Security Administration office if you took your spouse’s last name. The name associated with your Social Security number needs to match the name on your taxes or you risk the IRS holding your tax refund until the issue is resolved.
You’ll also need to:
Gather tax documents for both you and your spouse. This includes W2s, 1099s, medical and childcare expenses, mortgage interest statements, and investment income statements.
Decide whether you’ll claim the standard deduction or itemize. If you can write off more than the standard deduction, you should itemize your tax return. Keep in mind that you’ll need receipts or other documentation to back up your itemized claims for deductions and credits.
Choose a filing method. You can hire a tax professional or use tax software to file your tax return. You also have the option to mail in a paper return.
File your taxes. Your tax return is due by April 15, but you can file your taxes early to avoid extra stress and give yourself a safety net if you need more time to track down missing information, like expense receipts.
Start preparing for next year. Organize your paperwork so it’s easy to locate in the future. Depending on whether you receive a tax refund or a tax bill, you may consider adjusting your tax withholdings to better match your new financial situation.
Frequently asked questions for newlyweds filing their taxes
Here are some answers to some of the most frequently asked questions related to filing jointly.
How do we decide if we should file together or separately?
Try crunching numbers for both scenarios by preparing tax returns for each filing status. You can also consult a tax professional for detailed guidance.
How does filing for divorce affect our filing status?
Not all marriages work out. But you can file a joint return as long as you’re still considered legally married. So even if you’ve filed for divorce during the tax year, the IRS still considers you married unless you receive a divorce decree or judgment by December 31.
Can same-sex couples file jointly?
Yes, same-sex married couples can file as married filing jointly or as married filing separately. However, registered domestic partnerships and civil unions aren’t considered legally married for federal tax purposes. In these cases, couples must file their returns as single or “head of household”.
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