Get Married to reduce taxes.
Tax Tips for Newlyweds
Summer time is a popular season for weddings, but whatever the season, a change in your marital status can affect your taxes. Here are some important tips for newlyweds:
1.) It is critical that the names and Social Security number that you put on your tax returns match your Social Security Administration (SSA) records. If you have recently changed your name, please report the change to the SSA. To report the change file for SS-5 (Application for SS card), the application can be found on website www.SSA.gov or by calling 800-772-1213, or by visiting your local SSA office.
2.) If you recently changed your address, please file form 8822 (change of address form) to notify the IRS. You should also notify the United States Postal Service (USPS) of an address change. Mail can be forwarded online at www.USPS.com, or by going into your local post office.
3.) If you work, report your name or address change to your employer to ensure that you receive your W-2, Wage and Tax Statement, at the end of the year in a timely fashion.
4.) If you and your spouse both work, pay attention to the amount of federal income tax being withheld from your pay. Combined income may move you into a higher tax bracket. The IRS provides a withholding calculator tool that can be found on their website: www.IRS.gov. This calculator will help you complete a new W-4 form.
5.) As a single person you may not have qualified for itemized deductions. This may have changed now that you are married. You and your spouse may have some save some money by itemizing, rather than taking the standard deduction on your tax return. You will need to use the form 1040 with Schedule A, Itemized Deductions. You cannot use form 1040A or 1040EZ when you itemize.
6.) If you are married as of December 31st, that is your marital status for the entire year for tax purposes. You and your spouse have the option to file your federal income taxes, either as married filing jointly or married filing separately in any given year. It may be to your advantage to figure the tax both ways to determine which filing status results in the lowest tax. In most cases it is beneficial to file married filing jointly.
Internal Tax Resolution wishes you and your loved one the very best! If you have questions and need to resolve any tax issues prior to “tying the knot” we can help!