Congrats on the wedding! One thing nobody mentioned yet - don't forget to check if your state has different rules. I'm in CA and we have different brackets than federal. My accountant missed this and I ended up with a state tax surprise last year.

As someone who went through this exact situation two years ago (making about 195k when I got married), I can confirm that updating your W-4 to "married filing jointly" will help, but there are a few things to keep in mind: 1. The change isn't immediate - it takes effect with your next payroll cycle after HR processes your new W-4 2. You might want to run the numbers mid-year to see if you need to adjust further. I ended up getting a larger refund than expected because my withholding was a bit too high 3. Consider timing - if you're getting married late in the year, you might want to calculate whether it's worth adjusting withholding for just a few pay periods Also, since you mentioned home renovations, remember that some home improvement expenses might qualify for tax credits (like energy-efficient upgrades), which could further reduce your tax liability. The combination of filing jointly plus any applicable credits could make your savings even better than the bracket change alone. The IRS withholding calculator that others mentioned is definitely your best bet for getting the exact numbers right. Good luck with the wedding and the renovations!

I'm dealing with a somewhat similar situation but with a twist - I moved from New York to Florida mid-year, so I'm going from a high-tax state to a no-income-tax state. For anyone else in this reverse situation, here's what I learned: You still need to file a part-year NY return for the income you earned while living there, and you'll need to make estimated payments to NY if your withholding won't cover the liability for that partial year period. The tricky part is that your employer's payroll system might not automatically adjust your state withholding when you move, especially if they're based in your old state. I had to specifically request that they stop withholding NY state taxes once I established Florida residency. One thing that really helped me was keeping detailed records of my move date, utility transfers, voter registration changes, etc. NY can be pretty aggressive about claiming you're still a resident for tax purposes, so having a clear paper trail of when you actually relocated is crucial. Also, don't forget about the potential AMT implications if you had significant state tax deductions in your prior year federal return but won't have them going forward. Worth running the numbers to see if that affects your federal estimated payment calculations too.

This thread has been incredibly helpful for understanding multi-state tax situations! I'm actually dealing with a DC to Virginia move this year and was completely lost on how to handle the estimated payments. One thing I wanted to add that I learned from my tax preparer: if you're moving between states that have reciprocity agreements, it can simplify things quite a bit. For example, DC and Virginia have an agreement where you only pay income tax to your state of residence, not where you work. So if you live in VA but work in DC, you only owe VA taxes (though you still need to file in both places). This doesn't apply to everyone's situation here, but it's worth checking if your states have any reciprocity agreements before you start doing all the complex multi-state calculations. Could save you some headaches! Also, for anyone using tax software, make sure it's designed to handle part-year resident returns properly. I made the mistake of using basic software last year and it didn't handle the income allocation correctly between jurisdictions. Ended up having to file amendments which was a nightmare.

Does anyone know which tax software is best for doing multiple years of back taxes? I tried using TurboTax but it seems like they charge separately for each tax year, which gets expensive fast.

Being abroad definitely complicates things, but it shouldn't prevent you from getting caught up. One important thing to keep in mind - if you have any foreign bank accounts with aggregate balances over $10,000 at any point during those years, you'll also need to file FBARs (Foreign Bank Account Reports) for each year. These have separate penalties that can be pretty steep. Also, since you mentioned you've been abroad for work for 8 months, make sure to look into the Foreign Earned Income Exclusion and Foreign Tax Credit options. Depending on how long you've been there and whether you meet the bona fide residence or physical presence tests, you might be able to exclude a significant portion of your foreign earnings from U.S. taxation. The key is to tackle this systematically - gather all your documents first, then file the oldest year first and work your way forward. Don't let the overwhelm paralyze you - you're already taking the hardest step by deciding to address it.

Just adding one more thing - if you use tax software like TurboTax or H&R Block, they'll guide you through the part-year resident process for both states. You don't need your new drivers license to complete this, but you will need to know exactly when you moved and which income was earned in which state. The software will ask for your move date and split your income accordingly. I do this every year since I work in multiple states.

I went through this exact situation two years ago when I moved from Illinois to Texas in September. The good news is that you absolutely don't need a new driver's license to file your federal taxes - the IRS doesn't require it at all. However, you should definitely update your address with the IRS using Form 8822 if you haven't already. For state taxes, you'll likely need to file as a part-year resident in both your old state and new state. Some states do ask for driver's license numbers during e-filing for identity verification, but many will accept your current valid license even if it's from your previous state. The key thing is making sure you have documentation of when you moved (lease agreements, utility bills, etc.) to properly allocate your income between the two states. That said, you really should get your new state license soon - most states require it within 30-90 days of establishing residency, and it's completely separate from tax filing requirements. I learned this lesson when I got a warning from a state trooper about 4 months after my move!

This is such a common frustration! I went through the exact same thing when my parents paid my law school tuition after I got married. The rules definitely seem backwards - the people who are generous enough to pay get no tax benefit. One thing that helped me understand it better is that the IRS views education credits as a benefit for supporting a dependent's education. Once you're married filing jointly, you're no longer anyone's dependent, so the credit "follows" you as the student. The silver lining is that you and your spouse can likely claim either the American Opportunity Credit (if you're in your first four years of higher education) or the Lifetime Learning Credit (for graduate school). With $12,450 in qualified expenses, you could potentially get up to $2,500 back depending on your income level. I'd definitely recommend the approach that Harmony suggested - calculate what credit you receive and consider sharing that benefit with your in-laws as a way to acknowledge their generosity. It's not a perfect solution, but it helps make the situation feel more fair for everyone involved.

I just wanted to chime in as someone who works in tax preparation during filing season. This situation comes up constantly, and I always tell clients that while the rules might seem unfair, there's actually good reasoning behind them. The education credits are designed to benefit the taxpaying unit that's supporting the student's education expenses. Once you're married filing jointly, you and your spouse are considered one taxpaying unit, and you're no longer a dependent of your parents/in-laws for tax purposes. The key thing to remember is that your in-laws' payment is treated as a gift to you, and then you're considered to have paid the qualified expenses yourself. This means you can absolutely claim the credit without any issues - the IRS doesn't care about the source of the funds, just that you had qualified expenses and aren't claimed as a dependent. For graduate school expenses like yours, you'll want to look into the Lifetime Learning Credit since you're past the undergraduate level. With $12,450 in qualified expenses, you could get up to $2,000 back (20% of the first $10,000). Definitely consider sharing this benefit with your generous in-laws! One tip: make sure to keep documentation of their payment to the school, just in case. While not required for claiming the credit, it's good practice for your records.