What Are the Tax Benefits of Marriage?

Marriage often comes with commitments about supporting one another through good times and bad. But what you won’t hear during the ceremony is how tying the knot can also unlock valuable tax advantages. Couples who file jointly may be eligible for a range of benefits that can lower their overall tax burden and potentially increase their refund. Below is a look at the key tax perks available to married couples and how to make the most of them.

You can also consider reaching out to a financial advisor for help building a comprehensive tax strategy.

Tax Benefits of Marriage

While it isn’t wise to marry for financial reasons, tying the knot allows couples to enjoy the following tax benefits when filing jointly. Remember, the benefits below don’t apply to couples filing separately, which we cover in more detail below.

1. Potentially Lower Tax Bracket

Your income determines your tax bracket, which influences the rate at which your earnings are taxed as they rise. For married couples who file jointly, those brackets can be more favorable, potentially reducing the amount of tax owed compared to filing separately or as single individuals.

For example, if you make $120,000 this year and file single, part of your income would land in the 24% tax bracket for 2025. On the other hand, say you are married and filing jointly. You make $120,000 and your spouse makes $40,000 this year. Your top tax bracket would be 22% because of how tax law places couples filing jointly.

See more details in the table below to see how filing jointly can lower taxation on higher amounts of income.

2025 Federal Income Tax Brackets

2. Can Boost Retirement Savings

Federal law typically prevents single taxpayers who don’t earn wages from contributing to an individual retirement account (IRA). Fortunately, if a taxpayer who doesn’t earn wages is married, they can use their spouse’s income to fund their own IRA.

For example, if both spouses contribute to their own traditional IRAs, they would lower their taxable income by thousands of dollars. A spouse who has a retirement plan at work might lower the deductible amount from taxes, but the fact remains that the couple can each have IRAs.

Furthermore, couples filing jointly have a higher income limit for Roth IRA eligibility. For those filing single, the ability to contribute to an IRA begins to phase out at a modified adjusted gross income (MAGI) of $150,000. For those married and filing jointly, the phase out limit begins at $236,000.

3. Tax Shelter Opportunity

A spouse with a business that isn’t producing income wouldn’t be able to claim most deductions if they filed taxes separately. However, they can create a tax advantage for the couple.

For instance, the other member of the marriage generating income can use their spouse’s losses as a tax deduction, while also claiming deductions for mortgage interest payments, medical expenses and state and local taxes (SALT).

4. Estate Preservation

If one member of the couple passes away, they can transfer their entire estate – all their wealth and assets – to their spouse without incurring a nickel of estate taxes. As a result, married couples can preserve their wealth if one of them dies.

5. Increased Standard Deductions and Credits

When a taxpayer files single or married filing separately, the standard deduction is $15,750 for 2025. Married couples filing jointly don’t lose by taking the standard deduction. Instead, they receive double the amount for single filers, or $31,500, for 2025.

Plus, filing jointly can lower your combined income enough to access tax credits such as the Child and Dependent Care Tax Credit and the American Opportunity Tax Credit.

In addition, taxpayers usually can only deduct charitable contributions of up to 50% of their annual income. However, those who file jointly combine their income to determine this limit. Plus, filing with a spouse allows you to carry over leftover contributions to the next year if one spouse’s income isn’t double the amount of their charitable giving for the year.

6. Less Expensive Tax Filings

Filing taxes can cost hundreds of dollars, so paying for one tax return instead of two significantly decreases expenses. In addition, filing jointly will likely require less time than filing twice.

Drawbacks to Filing Jointly

Filing jointly comes with important drawbacks to consider. When you sign a joint return, you’re legally responsible for the accuracy of everything on it, even if your spouse prepared the return without your involvement. This means errors, omissions or intentional misreporting on your spouse’s part can expose you to IRS penalties. That said, the IRS does offer relief, such as innocent spouse relief, if you can demonstrate that you had no knowledge of the incorrect information.

Joint filers may also run into issues when one spouse has certain financial obligations. If your partner owes back taxes, child support or other court-ordered debts, the government can garnish part or all of your joint tax refund. In some cases, you may be able to request injured spouse relief to reclaim your share, but the process can delay your refund.

Some deductions also become harder to claim as a married couple. For example, to deduct medical expenses in 2025, your out-of-pocket costs must exceed 7.5% of your combined adjusted gross income (AGI). A couple earning $100,000 together would need more than $7,500 in qualifying medical expenses before any portion becomes deductible, which is often harder to meet than it would be for two individual filers.

Higher-earning couples may face additional tax burdens, as well. Joint filers with a combined income of $250,000 or more may owe both the 3.8% net investment income tax (NIIT) and the 0.9% additional medicare tax, thresholds that do not simply double compared to single filers. Single taxpayers are subject to these taxes starting at $200,000 of income, but married couples filing jointly only receive a $250,000 threshold, not $400,000, placing more high-earning couples into these surtaxes.

State and local tax (SALT) deductions can also be less favorable for joint filers. Even when itemizing deductions, married couples filing jointly are still limited to the same $10,000 SALT cap that applies to single filers. This means a couple could potentially claim a larger deduction by filing separately, depending on their income and state tax burdens, although doing so may reduce or eliminate other tax benefits.

What Is the Marriage Penalty?

Filing jointly can also incur the marriage penalty for couples trying to claim the Earned Income Tax Credit (EITC). Although the EITC generally helps parents with modest incomes, couples filing jointly might have more trouble qualifying.

For example, a parent filing single or as head of household with two dependents can claim the EITC if their AGI is $57,310 or less. On the other hand, a married couple with two dependents can claim the EITC if their AGI is $64,430 or less.

The income limit doesn’t double for couples trying to claim the EITC, demonstrating how filing single can be more tax-efficient in some situations.

Filing Separately vs. Filing Jointly as a Married Couple

While filing jointly as a married couple has numerous helpful tax implications, filing separately brings its own pros and cons. For example, if you want a deduction for out-of-pocket medical costs, 7.5% of your individual income can be significantly less than your combined income.

Furthermore, high-income couples may be able to reduce their income taxes by filing separately in some situations, depending on their individual incomes.

That said, each couple’s tax situation is unique, and filing separately can occasionally create more financial benefits than filing jointly. Therefore, consulting a tax professional is essential to optimize your tax deductions as a couple.

Drawbacks of Filing Separately When Married

While specific benefits are available to couples filing separately, doing so will incur several disadvantages. For instance, if you have a spouse with a retirement plan through their work, you can’t deduct traditional IRA contributions if your MAGI is over $10,000.

In addition, the law requires couples filing separately to choose between deduction types. So, both spouses must either take the standard or itemized deductions when filing separately.

You’ll also jeopardize your ability to claim the EITC, adoption expenses tax credit, Child and Dependent Care Tax Credit, Lifetime Learning tax credit and student loan interest deductions.

Finally, couples wanting to claim capital losses will have a $1,500 limit per person when filing separately. Conversely, those filing jointly receive a $3,000 limit.

How to Decide Which Filing Status to Use

Deciding how to file taxes as a couple can be confusing. Fortunately, you can understand which route benefits you more by preparing your tax return separately and jointly without submitting either return. Filling out each tax return allows you to calculate your refund or amount owed for each option.

You can also hire a tax professional to do this work for you. Preparing taxes can be time-consuming and complex and paying an expert can help ensure you make the most of your tax return.

Bottom Line

The tax benefits of marriage are generally more favorable for those married filing jointly. For instance, you can lower your tax liability and claim more tax credits. However, filing separately might be more helpful in some instances, such as when you want to claim out-of-pocket medical expenses but have a high combined income. In any case, the best way to tell which filing type will benefit you is to use the tax forms for both methods or hire a tax professional.

Tips for Optimizing Taxes While Married

• Filing jointly or separately can cause major tax ramifications. Fortunately, you can consult a financial advisor if you’re unsure how to file. A financial advisor can also help you plan your finances as a couple and set goals, such as retiring by a specific age. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Filing taxes has gotten much easier because of user-friendly tax services. They streamline the filing process and can help you claim the most deductions and exemptions. Here’s a breakdown of the two most popular tax filing services, H&R Block and TurboTax.
• Tax regulations change each year. With the year winding down, it’s helpful to understand what tax breaks you can claim on your return.

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