Late spring and summer are popular times to get married. But tying the knot brings about some changes in your taxes, so the Internal Revenue Service is providing seven tips for newly married couples.
1. Notify the Social Security Administration – It’s important that your name and Social Security number match on your next tax return, so if you’ve taken a new name, be sure to report the change by filling out File Form SS-5, Application for a Social Security Card, which is available on the Social Security Administration’s website or by calling 1-800-772-1213.
2. Notify the IRS If You Move – Filling out the IRS’s 8822 form, Change of Address, is the official way to update your address change. The form can be downloaded from the IRS’s site or by calling 1-800-TAX-FORM.
3. Notify the U.S. Postal Service – Submit a forwarding address to USPS to ensure your mail is sent to your new address. This can be done online or at your local post office.
4. Notify Your Employer – Update your employer if you change your name or address to ensure you receive your W-2, Wage and Tax Statement, after the end of the year.
5. Check Your Withholding – If both you and your spouse work, remember that your combined income could place you in a higher tax bracket. You can use Publication 505, Tax Withholding and Estimated Tax, to help determine the correct amount of withholding for your marital status. You should also complete a new Form W-4, Employee’s Withholding Allowance Certificate.
6. Select the Correct Tax Form – Choose your individual income tax form wisely because it can help save you money. Newlyweds may find that they now have enough deductions to itemize on their tax returns, rather than taking the standard deduction. Itemized deductions must be claimed on a Form 1040.
7. Choose the Best Filing Status – A person’s marital status on Dec. 31 determines whether they are considered married for that year for tax purposes. Tax law generally allows married couples to choose to file their federal income tax return jointly or separately during any given year. Figuring the tax both ways can determine which filing status will result in the lowest tax, but filing jointly tends to be more beneficial.