Keith Mack
Common-law marriage is a form of legal marriage, and common-law marriages are recognized for federal income tax purposes if recognized by the state in which the couple resides. Couples who file a joint tax return often pay less income tax compared to filing separately. However, there are risks associated with filing jointly as a common-law married couple. Once a couple holds themselves out as being married, they are considered married, and in the event of a separation, they will need to get divorced, which can be complicated. Additionally, when a couple files a joint tax return, their tax liability becomes joint and several, meaning each partner is responsible for the taxes in full.
Characteristics of filing taxes for common-law marriage
| Characteristics | Values |
|---|---|
| Common-law marriage recognition | Common-law marriage is only recognized in a few states, such as Texas |
| Filing jointly | Couples recognized as common-law married in their state can file taxes jointly |
| Tax benefits | Couples filing jointly often pay less income tax and are eligible for a higher standard deduction |
| Tax liability | Joint filing means each partner is responsible for taxes in full |
| Moving to a different state | If taxpayers move to a state that does not recognize common-law marriage, they are still considered married for federal income tax purposes |
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What You'll Learn
Common-law marriage and tax benefits
Common-law marriage is a form of legal marriage. Common-law marriages are recognized for federal income tax purposes if they are recognized by the state in which the taxpayers reside. Most states do not recognize common-law marriages, and in such states, couples are not permitted to file as a married couple. However, if a couple first lives in a state that recognizes common-law marriage and then moves to a state that does not, they are still considered married for federal income tax purposes.
Each state that recognizes common-law marriage sets forth certain tests that must be followed to establish the relationship. For example, in addition to living together for a certain amount of time, the couple must hold themselves out to the public as married persons.
If a couple files a joint tax return, their tax liability becomes "joint and several", meaning that they are each responsible for the taxes in full. However, couples who file a joint return often pay less income tax in comparison to filing separately. Additionally, joint filers are eligible to take a standard deduction that is double that of a single taxpayer.
If you are unsure whether you qualify as common-law married, consult a lawyer or financial advisor.
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Filing jointly vs separately
If you are in a common-law marriage, you must file taxes as married. Common-law marriage is a form of legal marriage. However, it is only recognized in certain states. Common-law marriages are recognized for federal income tax purposes if recognized by the state in which the couple resides.
Now, when it comes to filing your tax return as a married couple, you have two options: filing jointly or filing separately. Each filing status affects your taxable income, so it is important to choose the right one.
If you file jointly, you will combine your income, deductions, and credits with your spouse's, all on one tax return with the same tax rate. Both of you will be responsible for any taxes, interest, or penalties due to the IRS. Joint filers usually have higher income thresholds for certain taxes and deductions, meaning they can earn a higher income and still qualify for certain tax breaks. They also receive one of the largest standard deductions each year. In 2024, the standard deduction for married couples filing jointly was $29,200, increasing to $30,000 in 2025.
On the other hand, couples who file separately typically get fewer tax benefits. Separate tax returns may result in more tax. In 2024, the standard deduction for married couples filing separately was $14,600, increasing to $15,000 in 2025. Couples who file separately also cannot take the student loan interest deduction or claim certain education credits. However, there are certain circumstances where filing separately could be beneficial. For example, if one spouse has large out-of-pocket medical bills, filing separately might help surpass the IRS's threshold to deduct these costs. Filing separately can also be beneficial if you are preparing for a divorce or if one spouse is subject to the Alternative Minimum Tax (AMT) on a joint return.
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Common-law marriage and tax risks
In the United States, common-law marriages are recognised for federal income tax purposes if the state in which the couple resides also recognises such marriages. Most states do not recognise common-law marriages, so if a couple lives in one of these states, they are not permitted to file taxes as a married couple. However, if a couple initially resides in a state that recognises common-law marriages and then moves to a state that does not, they are still considered married for federal income tax purposes.
For couples who meet the requirements of a common-law marriage and live in a state that recognises such marriages, there are certain tax benefits to filing jointly. Married couples who file a joint return often pay less income tax compared to filing separately, and joint filers are eligible for a higher standard deduction.
However, there are also risks associated with filing taxes jointly as a common-law married couple. Once a couple holds themselves out as being married, they are considered married, and if they decide to separate, they will need to go through the divorce process, which can be complex and costly. Additionally, when a couple files a joint tax return, their tax liability becomes "joint and several," meaning each partner is responsible for the taxes in full. This can create complications if one partner owes a significant amount of back taxes.
It is important to note that the Internal Revenue Service (IRS) only allows couples to file joint tax returns if their state recognises their relationship as a legal marriage. Therefore, unmarried couples, including those in common-law marriages not recognised by their state, are not eligible to file joint returns. In such cases, other filing statuses, such as the Head of Household status, may be available depending on the circumstances.
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Common-law marriage and state recognition
In the United States, common-law marriage, also known as sui juris marriage, informal marriage, marriage by habit and repute, or marriage in fact, is a form of irregular marriage that only survives in a handful of states. These include Colorado, Iowa, Kansas, Montana, Rhode Island, Oklahoma, Texas, and the District of Columbia. Utah and New Hampshire have limited recognition of common-law marriage.
The recognition of common-law marriage varies by state, and this can lead to complications if couples move or if the marriage isn't recognized in a new state. For example, a couple with a common-law marriage in Texas may face challenges in proving their marital status if they move to California, which doesn't recognize such marriages.
Each state that recognizes common-law marriage has certain tests and requirements that must be followed to establish the relationship. These include the couple holding themselves out to the public as married persons, and cohabiting. Some states, like Texas, also require a signed declaration of evidence of agreement.
In states that recognize common-law marriage, couples often enjoy similar legal rights to traditionally married couples, including inheritance rights and decision-making in medical situations. They may also enjoy tax benefits, and can file joint tax returns. However, it's important to note that if a couple files a joint tax return, their tax liability becomes "joint and several", meaning each party is responsible for the taxes in full.
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Common-law marriage and federal income tax
Common-law marriages are recognized for federal income tax purposes if the state in which the taxpayers reside recognizes the marriage. If the state does not recognize common-law marriages, then the couple is not permitted to file as a married couple. However, if the couple moves to a state that does not recognize common-law marriages, they are still considered married for federal income tax purposes.
The IRS only allows couples to file joint tax returns if the state they reside in recognizes their relationship as a legal marriage. This means that unmarried couples are not eligible to file joint returns. However, preferential tax brackets apply to married couples filing jointly, which often results in the couple paying less income tax compared to filing separately. Additionally, joint filers are eligible for a Standard Deduction that is double that of a single taxpayer.
Each state that recognizes common-law marriage sets forth certain tests that must be followed to establish the relationship. It is not enough to simply live together for a certain amount of time. Instead, the couple must hold themselves out to the public as married persons.
If a couple fulfills the requirements of a common-law marriage and lives in a state that recognizes common-law marriage, there may be risks associated with filing jointly. While common-law marriage exists, there is no such thing as common-law divorce. Therefore, if the couple decides to separate, they will need to get divorced, which includes property and support obligations. Additionally, when filing a joint tax return, the tax liability becomes "joint and several," meaning each person is responsible for the taxes in full.
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Frequently asked questions
Common-law marriage is a form of legal marriage where a couple fulfills certain requirements and lives in a state that recognizes common-law marriages. Common-law marriages are recognized for federal income tax purposes if recognized by the state in which the couple resides.
Yes, common-law married couples can file taxes together. However, this is only possible if the state they reside in recognizes their relationship as a legal marriage.
Couples who file a joint tax return often pay less income tax compared to filing separately. Additionally, joint filers are eligible for a Standard Deduction that is double that of a single taxpayer.
Yes, there are risks involved. If the couple separates, they will need to get a divorce, which can be complicated, especially if there are children or shared assets involved. Additionally, when filing jointly, both individuals become responsible for the taxes in full.
No, unmarried couples are not eligible to file joint tax returns. However, when unmarried couples have children together, the Head of Household filing status is often available to the parent who pays more than half the cost of maintaining the home for the child.
