Marriage and Taxes

[Pooperman]

Apparently there's a saying about Death Marriage and Taxes. I don't know what happens to my taxes when fiance and I get married. We'll be getting married in October. From what I think I understand, the IRS will consider us married the entire year. If this is true, how do I approximate via withholdings to appear married even though I won't be until that date?

[ioseftavi]

We got married last year.  Yes, if you're married on midnight of 2015, the IRS considers you to have been married for the entire year.

As far as withholding or whatever now, just figure out what you estimate your joint tax rate to be (as if you were already married), and put in a number of allowances so that you think you'll get to around that amount of withholding.  There are calculators online you can use.

Alternately, max out the number of allowances you can do, and know that you'll write a huge check at the end of the year.  As far as not loaning the government money for free all year, this is the best route, but it will require some serious planning to account for the check you'll be writing come tax time.

[Pooperman]

We got married last year.  Yes, if you're married on midnight of 2015, the IRS considers you to have been married for the entire year.

As far as withholding or whatever now, just figure out what you estimate your joint tax rate to be (as if you were already married), and put in a number of allowances so that you think you'll get to around that amount of withholding.  There are calculators online you can use.

Alternately, max out the number of allowances you can do, and know that you'll write a huge check at the end of the year.  As far as not loaning the government money for free all year, this is the best route, but it will require some serious planning to account for the check you'll be writing come tax time.

Many thanks to you! I thought as much but wanted to be sure. This should mean that I can up my 401k %, or maybe lower it and fill out an IRA for my fiance after we are married. SO MANY CHOICES!

[NotJen]

If you make similar salaries, you can probably keep your withholdings the same and just switch over to 'Married but withhold at Single rate" later this year.

Otherwise, use the worksheet on the back of the W4 or the online withholding calculator with both of your incomes.

It depends on your income levels if your combined taxes will actually be different, but when it comes to withholdings, you have to tell your payroll departments about all your household income so they can do it correctly, which is where the W4 change comes in.

[Pooperman]

If you make similar salaries, you can probably keep your withholdings the same and just switch over to 'Married but withhold at Single rate" later this year.

Otherwise, use the worksheet on the back of the W4 or the online withholding calculator with both of your incomes.

It depends on your income levels if your combined taxes will actually be different, but when it comes to withholdings, you have to tell your payroll departments about all your household income so they can do it correctly, which is where the W4 change comes in.

Our combined income will be my income + under $10k for a total of around $70k not including bonus.

[MustachianAccountant]

You are considered married for the entire year. Fill out a new W-4 form with the assumption that you are already married, and turn that in to your employer.