Tax Implications of Getting Married: Filing Jointly vs Separately

Should You File Taxes Jointly or Separately After Marriage?

When you get married, it can feel like a million things in your life shift all at once, from possibly buying a home together or opening a joint bank account. One important detail many newlyweds overlook is how marriage impacts their tax filing status. Once you’re married, you must choose between Married Filing Jointly (MFJ) or Married Filing Separately (MFS). So, which option is right for you?

Married Filing Jointly (MFJ)

When you file jointly, you and your spouse combine your income, deductions, and credits into one return. This filing status often comes with significant advantages:

• Lower Tax Rates: Joint filers typically benefit from more favorable tax brackets compared to those filing separately.
• Higher Standard Deduction: For the 2025 tax year, married couples filing jointly can claim a $30,000 standard deduction. That is double the $15,000 available to those filing separately.
• Access to More Tax Credits: Filing jointly allows you to claim valuable credits like the Earned Income Tax Credit, American Opportunity and Lifetime Learning Education Credits, and the Child and Dependent Care Credit.
• Simplified Filing: Filing one return saves time and often reduces tax preparation costs.
• Larger Capital Loss Deduction: Joint filers can deduct up to $3,000 in capital losses versus $1,500 each if filing separately.
• Spousal IRA Contributions: A non-working spouse can still contribute to an IRA as long as the other spouse has earned income and they file jointly.

Potential Downsides to Consider:

• Shared Tax Liability: Both spouses are equally responsible for the entire tax obligation, even if only one spouse generated the income.
• Limits on Itemized Deductions: Some deductions, like medical expenses, may be harder to qualify for when filing jointly.

Married Filing Separately (MFS)

When filing separately, each spouse reports their income, deductions, and credits independently. This option may offer certain benefits:

• Separate Tax Liability: You’re only responsible for your tax obligations, not your spouse’s.
• Student Loan Repayment: If your payments are income-driven, filing separately may reduce your monthly amount by excluding your spouse’s income.

Potential Downsides to Consider:

• Higher Tax Rates: MFS filers often pay more in taxes due to less favorable brackets.
• Limited Tax Credits: Many tax credits are reduced or unavailable to MFS filers, including the Earned Income Tax Credit, education credits, and the Child and Dependent Care Credit. You may also lose or reduce deductions for student loan interest and IRA contributions.
• Lower Standard Deduction: Each spouse only receives a $15,000 deduction in 2025 versus $30,000 combined for joint filers.
• Reduced Capital Loss Deduction: Each spouse can only deduct up to $1,500 in capital losses.
• Must Use the Same Deduction Method: If one spouse itemizes, the other must as well. even if it’s not beneficial.
• Complexity in Community Property States: If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, community property rules may apply, adding complexity to your return.

When does it make sense to file separately?

Filing separately might be beneficial in these situations:

• One spouse has significant tax liability the other wants to avoid being responsible for.
• You’re going through a separation or divorce.
• A lower-earning spouse has high medical expenses exceeding 7.5% of income.
• You’re trying to avoid the Alternative Minimum Tax (in rare cases).

Filing Jointly vs Filing Separately: Which is best for you?

In most cases, filing jointly provides the greatest financial benefit for married couples. However, every situation is unique. Our team at Wiser Wealth Management is here to help you evaluate the options and choose what’s best for your family’s financial plan. We aren’t tax preparers, but as financial planners, we can guide you through the decision-making process and ensure it aligns with your overall goals. Schedule a consultation with us to discuss your options and determine the best strategy for your unique situation.

Have questions? Feel free to contact us.