Taxes may be the last thing on your mind on your wedding day, but being married significantly impacts your tax status. The essential information you need to be aware of is listed below.

Should there be a bonus or penalty for married taxpayers?

Occasionally, due to an error in the tax code known as the "marriage tax penalty," married couples end up paying higher income taxes than they would have if they had remained single. Marriage penalties frequently result when married taxpayers do not have access to the same tax rates, standard deductions, and other tax-related benefits that single taxpayers receive.

Over the years, Congress has taken steps to mitigate the marriage penalty's adverse effects. For instance, the criteria for six of the seven tax categories that married couples filing joint returns could use doubled from what single filers could use when the tax brackets were recently modified. One exception is where the highest tax bracket starts:

Single taxpayers with taxable income over $523,600 in 2021 will pay tax at 37%.

Only $628,000 is the threshold for married couples filing jointly, much less than what is available to single taxpayers. For wealthy couples, the marriage penalty is significant.

How far along is your application?

If you have to pay a marriage penalty, you shouldn't try to avoid it by maintaining your single filing status. If you were legally married as of December 31 of the tax year, the IRS considers you to have been married for the whole year. When filing, you often only have two options: married filing jointly or married filing separately.

Rarely does the married filing separately status lower a couple's tax obligation. There are several distinct rules for selecting that rank, including:

You cannot receive the Earned Income Tax Credit or the Child and Dependent Care Credit if you do not meet specific requirements for married but separated parents.

Student loan interest is not tax deductible.

Even though the standard deduction would decrease the other spouse's tax burden, both must itemize if one spouse does. No combinations are allowed.

Check your withholding.

Once you return from your honeymoon, you and your husband may need to adjust the amount deducted from your paychecks. You can do this by filling out a brand-new Form W-4.

The IRS revised Form W-4 in 2020. The new form helps you determine how much federal income tax your employer should deduct from your paychecks based on your filing status, other income, and any credits and deductions.

One of the simplest ways to complete Form W-4 is to use the W-4 Withholding Calculator in TurboTax. The calculator will walk you through a series of questions about your personal information, income, credits, and deductions while instructing you on how to complete a brand-new W-4. Hand over the completed documentation to your employer, and they will handle the rest.

Organize benefits

Regarding your occupations, getting married may enable you to make financial savings through your place of employment. Indicate which tax-favoured fringe benefits are available at each place of employment. You might be able to switch your coverage for a different perk, such as health insurance provided by your spouse.

Your Social Security card's name can be altered.

If your name has changed due to your marriage, you must notify the Social Security Administration (SSA). If the name on your tax return doesn't match the name, the SSA has on file, it will likely cause problems at the IRS while processing your return. Your anticipated tax refund can be put off while the situation is being handled.

You can alter your name at the SSA by submitting Form SS-5. Bring the filled-out form, identity documentation, and an original or certified copy of your marriage certificate to the local SSA office.

Even if the tax filing deadline is soon approaching and you haven't yet informed the SSA of your new name, you can still file a joint return with your spouse. Please keep it simple and only use your Social Security card's name.

Are you trying to sell a house?

Two homes frequently combine after marriage. Depending on the situation, selling one or both of the couple's properties can be essential.

The good news is that once you are married, you can earn twice as much from selling your home without paying taxes, from $250,000 to $500,000. Here is how it works.

To qualify for the more considerable $500,000 tax-free gain, both spouses must have lived in the property for at least two of the preceding five years, and at least one spouse must have owned the property for at least two of those five years. Have any further concerns about how getting married would impact your tax return? Don't worry about learning every tax regulation.