When you’re planning a wedding, you’re most likely caught up with thoughts of the reception or the future you’ll soon share together. However, there are several practical effects of getting married to keep in mind. Below are a few ways tying the knot will impact your tax returns.

How Will Getting Married Change How You File Taxes?

1. Alters Your Filing Status

After your big day, you’ll have to mark yourself as married filing jointly or married filing separately. Most couples go for the former since it qualifies them for more deductions and credits, which can significantly improve the size of their tax return at the end of the year.

2. A Change in Tax Bracket

While the recent tax code overhaul eliminated the marriage penalty for most families, combining your incomes could push you into a higher tax bracket. However, if one party earns significantly more than the other, the combined tax rate could go down after marriage. Try to figure out the effect this will have ahead of time, so you can adjust your W-4 tax withholdings appropriately.

3. Combining Benefits Packages

If you and your spouse both have benefits packages, you can pick and choose from different options to lower your tax burden. For instance, your employer might offer child care options, while your spouse’s job gives them access to a health care savings or retirement account.

4. Increased Limits for Retirement Contributions

Contributions to 401(k) accounts and IRAs are usually deductible, but those benefits are capped for each taxpayer. Marriage can increase these limits, allowing you to save more and lower your tax liability.

Preparing your tax returns is always confusing and overwhelming, especially after a major life change like marriage. Since 1986, the accountants at Selph and Friday, CPA have helped taxpayers throughout Texarkana, TX, navigate the complexities of the code and minimize their exposure. Visit their website for more on how they can help with your tax returns or call (903) 792-0281 to make an appointment.