IRS Common Law Marriage: What You Need to Know

Are you married in the eyes of the IRS? If you live in a state that recognizes common law marriage, you might be surprised to find out that you are. In this blog post, we will explain what common law marriage is, how it affects your taxes, and what you need to do to file correctly. Whether you are married or not, you don’t want to miss this valuable information.

What is Common Law Marriage?

Common law marriage is a legal status that is granted to couples who live together and present themselves as married, without having a formal ceremony or license. Common law marriage is not recognized by all states, but if you live in one of the states that does, you may be considered married for federal tax purposes. The states that recognize common law marriage are:

• Alabama
• Colorado
• District of Columbia
• Iowa
• Kansas
• Montana
• Oklahoma
• Pennsylvania
• Rhode Island
• South Carolina
• Texas

However, each state has its own rules and criteria for establishing a common law marriage, so you should check the specific laws of your state before filing your taxes. Some of the common factors that may indicate a common law marriage are:

• Living together for a certain period of time
• Sharing a last name or using a hyphenated name
• Wearing wedding rings or other symbols of commitment
• Introducing each other as husband and wife or spouses
• Having joint bank accounts, property, or debts
• Having children together or raising them as a family
• Filing joint tax returns or claiming each other as dependents

How Does Common Law Marriage Affect Your Taxes?

If you are in a common law marriage, the IRS will treat you as legally married for federal tax purposes. This means that you have to file your taxes as either married filing jointly or married filing separately, depending on your situation. Filing jointly is usually more beneficial, but it’s best to figure the tax both ways to find out which works best for you. If you are married as of December 31, the law says you’re married for the whole year for tax purposes.

Filing as married can have several advantages, such as:

• Lower tax rates and higher standard deduction
• Eligibility for certain tax credits and deductions, such as the child tax credit, the earned income tax credit, the child and dependent care credit, and the student loan interest deduction
• Ability to contribute to a spousal IRA or a Roth IRA
• Ability to transfer property or assets to your spouse without paying gift tax
• Ability to inherit from your spouse without paying estate tax

However, filing as married can also have some disadvantages, such as:

• Higher tax liability if you and your spouse have high incomes or large deductions
• Exposure to your spouse’s tax debts or penalties
• Loss of certain tax benefits, such as the head of household filing status, the tuition and fees deduction, or the adoption credit
• Inability to deduct alimony payments or claim alimony income

What Do You Need to Do to File Correctly?

If you are in a common law marriage, you need to make sure that you file your taxes correctly and consistently. Here are some steps that you need to take:

• Determine if you are in a common law marriage according to the laws of your state
• Choose the appropriate filing status (married filing jointly or married filing separately)
• Report all your income, deductions, credits, and payments accurately
• Sign your tax return and attach any required forms or documents
• Keep records of your common law marriage, such as affidavits, declarations, or certificates, in case the IRS questions your marital status
• Notify the IRS of any changes in your marital status, such as divorce, separation, or death of your spouse

IRS Common Law Marriage Conclusion

Common law marriage is a legal status that can affect your taxes in many ways. If you are in a common law marriage, you need to be aware of the rules and regulations that apply to you and your spouse. You also need to file your taxes correctly and consistently to avoid any problems or penalties from the IRS. If you have any questions or doubts about your common law marriage or your tax situation, you should consult us or a lawyer for guidance.

We hope that this blog post has helped you understand what common law marriage is and how it affects your taxes. If you find this information useful, please share it with your friends and family who may be in a similar situation. You can also check out our other blog posts on tax tips for married couples for more helpful advice. Thank you for reading and happy filing!

FAQs

Q: What is the difference between common law marriage and civil union?
A: A civil union is a legal relationship that is recognized by some states and provides some of the same benefits and obligations as marriage, but not all. A civil union is not recognized by the federal government or by states that do not have civil union laws. A common law marriage is a legal status that is recognized by some states and by the federal government and provides all the same benefits and obligations as marriage.

Q: How do I prove that I am in a common law marriage?
A: There is no definitive way to prove that you are in a common law marriage, as each state has its own rules and criteria. However, some of the common evidence that may support your claim are:

• Affidavits or declarations from you, your spouse, or witnesses who know about your relationship
• Certificates or documents that show your common law marriage, such as a common law marriage certificate, a declaration of informal marriage, or a certificate of domestic partnership
• Records that show your financial or legal interdependence, such as joint bank accounts, property deeds, mortgages, leases, insurance policies, or wills
• Records that show your social recognition as a married couple, such as birth certificates, school records, medical records, or social media posts

Q: Can I get divorced from a common law marriage?
A: Yes, you can get divorced from a common law marriage, but you need to follow the same legal process as a formal marriage. You need to file a petition for divorce in the state where you live or where your common law marriage was established and meet the residency and other requirements of that state. You also need to settle any issues regarding property division, alimony, child custody, child support, and other matters, either by agreement or by court order.

Q: Can I get married to someone else if I am in a common law marriage?
A: No, you cannot get married to someone else if you are in a common law marriage, unless you get divorced or annulled from your common law spouse first. Otherwise, you would be committing bigamy, which is a crime in most states and can have serious legal consequences.

Q: How do I change my name after a common law marriage?
A: If you want to change your name after a common law marriage, you need to follow the same procedure as a formal marriage. You need to get a certified copy of your common law marriage certificate, declaration, or document, and use it to update your name on your Social Security card, driver’s license, passport, and other identification documents. You also need to notify your employer, bank, creditors, and other institutions of your name change.