Getting Married: Frequently Asked Questions
Marriage changes your taxes, your benefits and your financial planning all at once. Here are answers to questions newly married couples often ask.
How does marriage change my tax filing status?
If you are married on the last day of the tax year, you are considered married for the whole year. Most couples choose between filing jointly and filing separately. Joint filing is usually the better result, but not always, so it is worth comparing both ways.
Will we pay more tax as a married couple?
It depends on how your incomes compare. Some couples pay less, particularly when one spouse earns much more than the other. Some, especially two high earners, may pay more than if they were single. A projection before the year ends can show where you stand.
Do we need to update our names and records?
If either of you changes your name, update it with the Social Security Administration first, since the name on your tax return must match their records. Then update your employer, bank, driver's license and other records. See ssa.gov for the process.
Should we change our withholding?
Probably. When two incomes are combined, the withholding on each paycheck may not add up to the right total. Each spouse should update the Form W-4 with their employer, and the IRS Tax Withholding Estimator at irs.gov can help you complete it.
What happens with health insurance?
Marriage is generally a qualifying life event that allows you to enroll in or change health coverage outside the normal enrollment period, but only within a limited window. Compare each employer's plan costs and coverage before deciding who covers whom. Marketplace users should report the change at healthcare.gov, since it can affect premium credits.
What other paperwork should we review?
- Beneficiary designations on retirement accounts and life insurance
- Wills and powers of attorney
- Emergency savings and a shared budget
- Insurance policies, which are often cheaper when combined
Does a prenuptial agreement affect taxes?
A prenuptial agreement mainly governs property rights and what happens in a divorce or death, but it can interact with estate and tax planning. Have an attorney draft it and let us know if there are tax questions.
Planning a wedding or recently married? Contact us and we can help you set up your finances as a couple.
This article is general information, not tax, legal or investment advice for your specific situation.