Tax Implications
Many people associate marriages with tax benefits. With some exceptions, filing joint taxes can lower tax rates and result in increased deductions. By filing jointly, you could also be personally pursued by the IRS if your spouse makes filing mistakes or commits fraud.
Domestic partnership varies on a state-by-state basis, domestic partners may have the opportunity to file state taxes jointly but are not recognized on a federal level. So knowing state laws are crucial when it comes to tax filing.
Inheritance And Estate Planning
Marriage has some marked benefits in inheritance and estate planning. Couples with assets more than $20 million stand to benefit most from some of the estate planning strategies under today’s federal tax laws. For starters, spouses enjoy an unlimited marital deductions, meaning they can transfer an unlimited amount of funds to each other during life or at death without incurring gift or inheritance taxes.
As of 2025, a taxpayer’s lifetime gift and estate tax exemption is $13.99 million. Meaning that when an unmarried person passes away with an estate valued higher than that amount, the excess is subject to estate taxes. If you are married to a US Citizen, 100% of what passes to the spouse is excluded from that estate tax.
Inherited Retirement Accounts
are also subjected to less restrictions when passed to a spouse.
Marriage can offer significant benefits in taxes.
Domestic partnerships lack federal recognition and certain benefits.
These and other tax implications can be discussed with a tax professional.
