Important Tax Considerations for Newlyweds

Important Tax Considerations for Newlyweds Episode 365 – Have you gotten married recently? The next steps are considerably less exciting. There are some important financial steps you need to take. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 365 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, some important tax considerations for newlyweds. So, congrats on your recent marriage. If you’re like most people, your wedding probably involved a significant amount of planning and detail: where, when, who to invite, who not to invite, where to seat everybody, etc. You may be glad you to get through such an important life-changing event, and you’re ready to move on with the rest of your life. But you’re not done quite yet. There are a number of financial details you may need to address. Here are just a few of them: Name change. If there is a name change involved, you’ll need to report it to the Social Security Administration (SSA). When you file your next tax return, the name on that return needs to match what the SSA has on file. The Internal Revenue Service, or IRS, recommends that you file a new Form SS-5, Application for a Social Security Card, which is available at SSA.gov.[1] Update your address. Make sure you let the IRS, the Postal Service, and your employer know about any address change. Coordinate your benefits. You might now have access to a better—or cheaper—health insurance plan.[2] You’ll need to look things over with your new spouse. Decide on your new filing status. Once you’re married, you can choose to file jointly or separately each year. While the IRS says that filing jointly is usually less expensive, they recommend that you calculate it both ways before you decide. Also, it doesn’t really matter what day you got married. Even if it’s on New Year’s Eve, the rules state that for tax purposes, you’re considered married for the entire year.[3] Married filing separately. Once they’re married, few people elect to file their income taxes separately. This is because it usually results in the highest combined taxes. But some people do this anyway because the individual filing the return is the only one liable for any tax bills and errors on that return. It also happens when the two spouses decide, for whatever reason, that they would prefer to only be responsible for their own taxes.[4] Marriage penalty. The so-called “marriage penalty” occurs when a married couple ends up paying more income taxes than they would have had they remained single. This becomes more likely when both of you have high earnings and close to the same income. On the other hand, if you and your spouse are at different income levels, odds are that there will actually be a marriage bonus, that is, the tax on your joint income will be less than it would be had you filed separately.[5] Standard deduction. Nowadays, only about 10 percent of taxpayers itemize their deductions.[6] The rest use the standard deduction. For 2026, the standard deduction is $32,200 for married couples filing jointly, and $16,100 for single taxpayers. These figures were adjusted as part of the One Big Beautiful Bill passed in July of 2025. On some occasions, getting married can have an impact on whether you itemize or not. Previous debts. If your new spouse owes money for previous taxes or child support, any future joint tax refund could be reduced as a result.[7] Separate homes. If you own two separate houses, it’s likely that you’ll be selling one of them when you get married. And if you’re selling at a gain, you may get extra benefits from being married. Once you’re married, you get an addition to the amount of tax-free gain you can take. The amount is $250,000 for single taxpayers, but $500,000 for married taxpayers. The rules are a bit tricky, though, and you need to make sure you meet all the qualifications.[8] Beneficiary and Will Review. This one may or may not result in tax consequences, but it is important to note. When getting married, it’s critical for each spouse to review any existing wills, plans or benefits (such as life insurance) that assigned a beneficiary or beneficiaries. Unless restricted by a court order, it’s usually preferable for the new spouse to be assigned as beneficiary in each of those examples. So be sure not to overlook this step in the process and make any required changes when getting married. Getting married represents a big change for just about anybody, and not just in your personal life. Your financial life is also likely to be affected in a number of different ways. But as long as you know what to expect, the additional stress involved should be manageable. Let the fun begin! [1] Internal Revenue Service. “Newlyweds tax checklist.” IRS.gov. https://www.irs.gov/newsroom/newlyweds-tax-checklist (accessed December 4, 2025). [2] TurboTax Expert. “Getting Married: What Newlyweds Need to Know.” Intuit.com. https://turbotax.intuit.com/tax-tips/marriage/getting-married/L0DvEUlEC (accessed December 4, 2025). [3] Internal Revenue Service. “Essential tax tips for marriage status changes.” IRS.gov. https://www.irs.gov/newsroom/essential-tax-tips-for-marriage-status-changes#:~:text (accessed December 22, 2025) [4] Willetts, Jo. “Tax tips for newly married couples.” Jacksonhewitt.com. https://www.jacksonhewitt.com/tax-help/tax-tips-topics/family/tax-tips-for-newly-married-couples/ (accessed December 5, 2025). [5] Id. [6] Tax Policy Center. “What are itemized deductions and who claims them?” Taxpolicycenter.org.https://taxpolicycenter.org/briefing-book/what-are-itemized-deductions-and-who-claims-them (accessed December 4, 2025). [7] Manganaro, John. “9 Key Tax Considerations for Newlyweds.” ThinkAdvisor.com. https://www.thinkadvisor.com/2025/06/27/9-key-tax-considerations-for-newlyweds/ (accessed December 4, 2025). [8] TurboTax Expert. “Getting Married: What Newlyweds Need to Know.” Intuit.com. https://turbotax.intuit.com/tax-tips/marriage/getting-married/L0DvEUlEC (accessed December 4, 2025). More SML Planning Minute Podcast Episodes This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation. To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time. Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice. The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. 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