Timing Your Marriage Right for Tax Benefits
Getting married can be one of your happiest moments, but it also has several advantages for your tax return. But in order to get the most tax benefits from your marriage, you need to time it right. A 2025 spring wedding sounds incredible, but you will miss out on significant tax savings than if you were to go to the courthouse just before 2024 ends.
As long as you are married on December 31st, 2024, the IRS will treat your marriage as applying for the entire year. This allows you to file your 2024 tax return under the married filing jointly status. The advantage here is that the tax code generally benefits married couples and families. While the married filing jointly standard deduction ($29,200) is simply double the single standard deduction ($14,600), the tax brackets reveal the more savings. As the tax rate increases, the gap between the single and married filing jointly brackets shortens. Single filers hit the 37% tax rate at $609,351 or more in taxable income. Married filing jointly taxpayers hit the same rate with only $731,201 or more, rather than a flat double. If you and your partner have similar incomes, getting married can save you thousands of dollars each.
Along the same vein, if you are planning on getting divorced, don’t rush the process. It may be awkward, but you will both save a large sum of money if you allow yourselves to still be married on December 31st. Keep in mind that the Tax Cuts and Jobs Act of 2017 changed how alimony payments are taxed between you and your ex. “Under the new rules, which apply to all agreements executed after December 31, 2018, the payor gets no tax deduction and the recipient does not recognize income.”
However, depending on your circumstances, you could benefit more from staying single (not married) for more time. If you and your partner own a home together but have not gotten married, you are able to deduct significantly more mortgage interest than married couples. Those who own a house together and are married are capped at deducting $750,000 in mortgage interest total. But if you are not married and file appropriately as single, then the deduction doubles to $1.5 million between the two of you.
Marriage has a lot of financial implications for couples, especially in the tax world. Time is running out to get married before December 31st, so if you want to be sure you are making the right move, speak with your tax professional soon before tying the knot. At XQ CPA, we’d love to support you on your journey. Give us a call to get in touch with a tax pro today.
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Want to save $10,000 in taxes? Read XQ CPA's official tax planning guidebook! How to Grow Your Wealth Through Tax Planning.
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