How does a change in marital status affect your taxes? 

Marital status vs. filing status: What's the difference?

Marital status and filing status are two different things. Your marital status (e.g., single, married, separated, divorced, or widowed) is an official relationship status recognized by your local government. Your filing status, on the other hand, is how you tell the IRS which tax rate you are eligible for, so you can pay the right amount of taxes. 

For example, when you get married, your marital status and your filing status both change, but you now have a choice of two filing statuses, married filing jointly or married filing separately. If you are single, you may also qualify for another filing status that could be more beneficial, like head of household.  

 How does the IRS determine your filing status? 

You choose your filing status when you file your return; the IRS doesn't assign it to you. The IRS sets the rules for which status you're eligible for, based on your marital status and household situation. To be considered married by the IRS, you must be legally married on December 31 of the tax year, regardless of when you got married.

The five filing statuses

If more than one filing status applies to you, choose the one that gives you the lowest tax.

Getting your filing status right isn't just a formality. It affects your standard deduction, tax bracket, and eligibility for certain credits, so it's worth double-checking before you submit your return.

Did you get married this year? 

If you got married this year, congratulations! In terms of taxes, marriage could mean substantial changes, the biggest being your filing status. As we mentioned earlier, you now have the option of either filing jointly with your spouse or filing separately. Each of these filing statuses comes with its own advantages.

Married filing jointly vs. married filing separately

Filing a joint return combines both your incomes, deductions, and credits into a single tax return. The threshold for many taxes and deductions is higher on a joint return, which means you can earn more together before you must pay more.

Filing separately could work in your favor, depending on your tax situation, like if you have many out-of-pocket medical expenses to claim. On the other hand, filing separately might disqualify you from certain tax deductions and credits, such as:

• Student loan interest deduction: A deduction of up to $2,500 in qualified student loan interest.
• Education credits: Two credits, the American Opportunity Tax Credit and the Lifetime Learning Tax Credit, available to eligible students or dependent students enrolled in part-time or full-time college, university, or trade school courses during the tax year.
• Earned Income Tax Credit (EITC): A credit for taxpayers whose earned income is low.
• Premium Tax Credit: The reconciliation of the advance payment of the tax credit used to lower the cost of health insurance.
• Child and Dependent Care Credit: A credit for some of the eligible expenses paid for daycare for either a qualified child or other dependent while you work.
• No tax on tips and overtime deductions.

Not sure which way to go? Ask your Tax Pro.

Update your Form W-4 after marriage

Once married, make sure to update your filing status on your W-4 with your employer ASAP to ensure you set aside the right amount to pay your taxes. This will help you avoid underpaying your taxes and potentially a big surprise tax bill when you file.

Report a name change to the Social Security Administration

If you changed your last name after getting married, you must report it to the Social Security Administration (SSA) before you file your tax return. If the name on your tax return doesn’t match SSA records, it could mean delays in processing your return or your refund.

Don’t wait until your tax return is due to get started. It typically takes a few weeks for the SSA to process a name change and update its records.

What happens to your taxes if your marriage is annulled? 

If you had your marriage annulled, the IRS considers you to be unmarried for any tax year in which you were married and filed a return.

Do I need to amend prior years' returns if my marriage is annulled? 

Yes, you must amend your tax returns if your marriage is annulled for any years that you filed as married filing jointly or married filing separately during the marriage.

Did you get divorced or separated this year?

Getting divorced impacts your filing status for a given tax year. Once you are divorced, you lose both options to file as married until you remarry. If you remarry in the same year as your divorce, you may file as married with your new spouse.

If you and your partner split up or separate, but you’re not divorced or legally separated according to your state’s law by the end of the year, your filing status does not change. Your status is still married, and you and your spouse still have the choice to file as married filing jointly or married filing separately. 

Tip: A joint return may allow a refund vs a balance due or a larger refund, but it makes both taxpayers liable for any issues with the tax return. A separate return doesn’t allow certain credits and has a higher overall tax rate, but only the taxpayer on the return is liable for any issues.  

When are you considered divorced for tax purposes?

For tax purposes, you are considered divorced if you are no longer married on December 31 of that tax year. It doesn’t matter when you separated or started divorce proceedings, as long as you are legally divorced before the last day of the tax year.

For example, if you finalize your divorce on December 29, 2026, the IRS considers you to be divorced for the entire 2026 tax year. However, if you finalize your divorce on January 3, 2027, the IRS considers you to be married for the 2026 tax year, even if you’ve been separated for an extended time.

Can you file as head of household?

Yes, if you’re divorced, you may qualify as head of household, which typically offers more favorable rates and a larger standard deduction compared to filing as single. In addition to being considered unmarried by December 31 of the tax year, you must also have paid more than half of the household expenses and lived with a qualifying dependent for more than half the year.

You may qualify as head of household, even if you’re not legally divorced by the end of the tax year, if you’ve lived separately for at least six months and meet the other requirements.

Claiming dependents after a divorce or separation

After a divorce or separation, only one parent can claim a child (or children) as a dependent for a tax year, even if you have joint custody. This can impact who can file as head of household, as well as who can claim the Child Tax Credit and other tax credits.

Typically, the IRS considers the custodial parent to be the one who can claim the dependent. This is the parent the child lives with for most of the year and provides over half the financial support for the child.

However, the custodial parent can sign away their claim to the dependent using Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. This allows the noncustodial parent to claim the child as a dependent.

How alimony and child support are taxed

If you’re recently divorced or in the process of divorcing, you don’t have to worry about alimony or child support affecting your taxes, regardless of whether you pay or receive one or both. The IRS treats both as personal expenses, which means payments are not taxable to the person receiving them and not deductible for the person paying them.

Prior to 2019, the IRS handled alimony differently, considering it taxable income for the receiver and a deductible expense for the payer. These older rules still apply for divorces finalized before December 31, 2019.

Can I deduct my divorce attorney fees?

No, the IRS considers divorce attorney fees to be personal legal expenses. The Tax Cuts and Jobs Act (TCJA) ended the deduction for most personal legal fees in 2018. Exceptions may apply for divorce attorney fees tied specifically to tax advice.

When should I update my W-4 after marriage or divorce?

Update your W-4 as soon as you’re able to after getting married or divorced. This will help you avoid under or overpaying taxes and ending up with a surprise tax bill or an incorrect refund.

Marriage, divorce, and separation all bring changes to your taxes, but you don't have to sort it out alone. Walk in or book an appointment today. Your local Jackson Hewitt Tax Pro can help make sure your filing status, dependents, and withholding are all set up right, so you can file with confidence.