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When you start a new job, one of the first things your employer will ask you to do is fill out a W-4 form. This form helps your employer figure out how much federal income tax to withhold from your paycheck. One of the most important decisions you'll make on the W-4 is whether to choose the "single" or "married" filing status, as this will directly impact how much tax is withheld. But what exactly is the difference between withholding for single versus married? Let’s break it down.

For single taxpayers, the IRS expects a higher tax rate on a smaller chunk of income. Married couples, particularly those filing jointly, typically benefit from lower withholding because the tax system assumes a larger combined income, which is taxed at lower rates for larger brackets. Simply put, when you get married and file jointly, less money is withheld from your paycheck, which can translate into more take-home pay.

Single Filing Status: What to Expect

If you're single, the IRS sees you as an individual, meaning you only have yourself to account for when it comes to income, deductions and taxes. Single taxpayers have the option of filing as a single filer or head of household (if qualified), with the head of household providing better tax benefits. Choosing the single status on your W-4 means your employer will withhold more money from your paycheck compared to someone who is married and filing jointly.

The standard deduction for single filers in 2024 is $14,600. This amount is subtracted from your total income before taxes are calculated. From there, your income is taxed at progressively higher rates, starting at 10% and going up as your income increases. For example, your first $11,600 is taxed at 10%, and income beyond that is taxed at higher rates, depending on how much you earn.

Married Filing Jointly: Why Does It Make a Difference?

Married couples can choose to file jointly (often the better option) or separately, depending on their circumstances. When you get married and file jointly, the IRS assumes you and your spouse are combining your incomes. In 2024, the standard deduction for married couples filing jointly is $29,200—double that of a single filer. This means a larger portion of your combined income is shielded from taxes, and the income that is taxed falls into lower brackets for a longer stretch.

The first $23,200 of your joint income is taxed at the lowest rate of 10%. In addition, tax brackets are wider for married couples, allowing you to pay lower rates on larger amounts of income. This can result in significantly less tax being withheld from your paychecks compared to the single status. Filing jointly also opens the door to several tax credits and deductions that aren’t available to single filers, which can further reduce your tax liability.

Married Filing Separately: A Less Common Choice

While most married couples choose to file jointly, some opt to file separately. This could be for various reasons, such as protecting one spouse from the other’s tax liabilities or in situations where filing separately may reduce overall tax burdens, especially in cases involving high medical bills or certain tax credits. However, married couples who file separately miss out on several tax benefits that joint filers receive, like the Earned Income Tax Credit or student loan interest deductions.

If you’re married and decide to file separately, your withholding will look more like it does for a single filer. You’ll lose the advantage of the larger deduction and wider tax brackets.

Understanding the 2024 Tax Brackets

Tax brackets for 2024 differ based on whether you file as single, married filing jointly, or married filing separately.

Image Source: Internal Revenue Service

These differences underscore why so many married couples see a benefit in filing jointly. The tax system is designed to give couples a bit of a break, assuming they’re pooling their incomes and expenses. For single taxpayers, there are fewer opportunities to spread the tax burden across larger income levels.

Avoiding Withholding Surprises

It's crucial to adjust your W-4 form whenever you have a significant life change, such as getting married or divorced. If you don’t, you may find that you’ve either had too much or too little withheld from your paycheck. Withholding too much means you’ll get a bigger refund at tax time, but you’ll have less money to spend throughout the year. Withholding too little, on the other hand, could lead to an unexpected tax bill—and potentially a penalty for underpayment.

For taxpayers with an adjusted gross income (AGI) of $150,000 or less, the IRS requires that you pay 90% of your current year’s tax or 100% of the previous year’s tax to avoid penalties. For those with an AGI above $150,000, the threshold increases to 110% of the prior year’s tax.

Conclusion: Which Status Should You Choose?

Choosing the right filing status isn’t just about checking a box on a form—it’s about ensuring that the right amount of tax is withheld from your paycheck. For most people, filing jointly as a married couple results in lower taxes and more take-home pay, thanks to higher standard deductions and wider tax brackets. Single filers, while paying more upfront, may receive a larger refund at tax time if too much was withheld.