Keith Mack
Common-law marriage has been practiced in the United States since the 1870s. Couples in a legally-recognized common-law marriage in the state where it began can choose a married filing status. The IRS treats common-law marriages on par with legally married ones, and common-law partners can often save money by filing a joint return. However, there are certain risks associated with filing jointly as common-law partners, such as joint tax liability.
| Characteristics | Values |
|---|---|
| Common law marriage recognition | Common law marriage is recognised in some states, including Texas, Georgia, Idaho, New Hampshire, and Ohio. |
| Filing joint returns | Common-law married couples can file joint tax returns and may benefit from doing so. However, they are then considered married and would need to divorce if they separate. |
| Tax implications | Common-law married couples who file jointly may be eligible for increased tax credits, deductions, and benefits, similar to legally married couples. |
| IRS treatment | The IRS treats common-law marriages on par with legal marriages for tax purposes and recognises them if the state where the marriage began recognises them. |
| Same-sex common-law marriages | Same-sex common-law marriages may not be recognised for federal tax purposes, even if recognised by state law. |
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What You'll Learn
Common-law marriage is a legal marriage
If a couple meets the definition of a common-law marriage, they must file their taxes as such. The IRS treats common-law marriages on par with legal marriages, and common-law partners can often save money by filing a joint return. By filing jointly, common-law partners can use employer benefits for their spouses, and they can also receive one another's social security benefits.
To be considered a common-law marriage, a couple can sign a document and submit it, or they can hold themselves out as being married. Filing a joint tax return would fulfill the second element. If a couple is recognized as common-law married by their state, they can file as married filing jointly (MFJ). However, it is important to note that if a couple separates, they will need to get a divorce, as there is no such thing as common-law divorce.
When deciding how to file taxes, it is recommended to prepare the tax return both ways, as married filing jointly and married filing separately, and then choose the option that provides the biggest tax savings. There are benefits to filing jointly, such as a bigger standard deduction, reducing taxable income. However, there are also risks to filing jointly, as both spouses become responsible for any taxes owed.
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Common-law marriage and joint returns
Common-law marriage is a form of legal marriage that has been practiced in the United States since the 1870s. Couples in a legally-recognized common-law marriage in the state where it began can choose a married filing status. Common-law partners can often save money by filing a joint return.
To be considered a common-law marriage, a couple must live together for a while and present themselves as a married couple to their family, friends, and community. In some states, another requirement is to sign a document and submit it. Filing a joint tax return would fulfill the element of presenting as a married couple.
If recognized as a common-law marriage by their state, couples can file jointly. However, there are risks involved. When filing a joint tax return, tax liability becomes "joint and several," meaning each individual is responsible for the taxes in full. Additionally, there is no such thing as common-law divorce, so if the couple decides to separate, they will need to get divorced with all the property and support obligations that entails.
The IRS treats common-law marriages on par with legally married ones. When filing as a common-law partner, individuals are eligible for all the legal benefits that married couples get. To file as a common-law marriage, both partners must file their own tax returns with the Internal Revenue Service (IRS), including their personal information, the name of their common-law partner, their net income, and social insurance number. The IRS will then calculate the benefit amounts and tax credits the couple is eligible for, based on their combined household income.
The best way to determine whether to file jointly or separately is to prepare the tax return both ways and look at the net refund or balance due from each method.
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Tax benefits of filing jointly
In the United States, common-law marriage is a form of legal marriage. However, it is only recognized in certain states, such as Texas, Georgia, Idaho, and New Hampshire. If a couple is recognized as common-law married by their state, they can file taxes jointly. Filing jointly as married can often come with more benefits than filing separately.
When filing jointly, couples can usually qualify for more tax credits and deductions. For example, 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. The standard deduction for married couples filing jointly in 2024 is $29,200, which will increase to $30,000 in 2025. In comparison, the standard deduction for married couples filing separately in 2024 is $14,600, increasing to $15,000 in 2025.
Additionally, when filing jointly, the spouse with the higher income can use the other spouse's standard deduction, which is more favorable than filing separately. Joint filers can also combine their individual benefits, such as property taxes or mortgage interest deductions. They can also share capital loss deductions, with a limit of $3,000, compared to the $1,500 limit for separate filers.
However, there are some risks associated with filing jointly. Both spouses are responsible for any tax owed, and if one spouse understates the taxes due, both are liable for penalties unless the other spouse can prove they were unaware. Therefore, it is important for couples to consider their current living situation and financial goals when choosing their filing status.
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Common-law marriage and individual tax returns
In the United States, common-law marriage has been practised since the 1870s. It is a form of legal marriage without a formal wedding ceremony. Common-law marriage is recognised differently across various states, with some states permitting older common-law marriages.
For couples in a legally recognised common-law marriage, the IRS treats these relationships on par with legally married couples. This means that common-law spouses can choose to file their tax returns jointly or separately, just like legally married couples.
If a couple in a common-law marriage chooses to file a joint tax return, they can benefit from joint tax credits and deductions, such as combining medical expenses or charitable donations, and claiming spousal and common-law partner amounts. Additionally, filing jointly can result in a bigger standard deduction, reducing their taxable income. However, it is important to note that by filing jointly, both spouses become responsible for any tax owed, and their tax liability becomes "joint and several".
On the other hand, if a common-law couple chooses to file separately, they must still mention their common-law relationship status on their individual tax returns. They need to provide their common-law partner's name, net income, and social insurance number. The IRS will then calculate the benefit amounts and tax credits based on their combined household income.
It is always recommended to seek professional advice regarding taxes and to carefully consider the potential tax implications of filing jointly or separately before making a decision.
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Common-law marriage and divorce
Common-law marriage, also known as informal marriage, is recognised in some states. Where recognised, common-law marriages are treated the same as traditional marriages. This means that common-law married couples must go through the same divorce process as traditionally married couples.
To file for divorce, individuals must first prove the validity of their common-law marriage. This can be done through evidence such as cohabitation, shared finances, or public acknowledgment of the relationship. For example, in Texas, one of the three criteria for a judge to uphold a common-law marriage is that both parties agreed to be married. Another criterion is that the couple lived together, and the third is that they represented themselves to others as a married couple.
In some states, common-law couples must live together for a certain period to be considered married. However, in other states, cohabitation time is not a factor. It is important to note that the requirements for common-law marriage are set by individual states, not the federal government, and can vary significantly.
During the divorce process, common-law married couples must decide whether to seek a no-fault divorce or one alleging misconduct by one spouse. They must also resolve issues such as property division, child custody, and support. If these issues are not relevant, it may be simpler for the couple to separate without going through the legal divorce process.
Regarding tax filing, common-law married couples can file joint tax returns. This can also serve as evidence of their marriage. When filing jointly, both spouses must sign the income tax return, and both are responsible for any tax owed. It is important to note that taxpayers who are legally separated or divorced cannot file joint returns and must file as single taxpayers.
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Frequently asked questions
Common-law marriage is a form of legal marriage. It is recognised in some states, but not others. Common-law marriage is typically defined by two people cohabiting for a certain period of time and holding themselves out to the public as married persons.
Yes, if you are in a common-law marriage and your state recognises this, you can file a joint return. However, if you are in a state that does not recognise common-law marriage, you are not permitted to file as a married couple.
If you file a joint return as a common-law married couple, your tax liability becomes "joint and several", meaning you are each responsible for the taxes in full. Additionally, if you separate, you will need to go through a divorce like any other married couple.
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