Summer Newlyweds: Think About Taxes
Spring showers bring summer flowers, and weddings typically aren't far behind. Newlyweds have a lot to think about, and taxes might not be on the list. However, there is good reason for a new couple to consider how the nuptials may affect their tax situation.
The IRS has some tips to help in the planning:
- Report changes in the following:
- Name—When a name changes through marriage, it is important to report that change to the Social Security Administration (SSA). The name on a person's tax return must match what is on file at SSA. If it doesn't, it could delay any refund. To update information, file Form SS-5, Application for a Social Security Card. It is available on Link opens in a new windowSSA.gov, by calling 800-772-1213, or at a local SSA office.
- Address—If marriage means a change of address, the IRS and U.S. Postal Service need to know. To do that, send the IRS Link opens in a new windowForm 8822, Change of Address. Notify the postal service to forward mail by going online at Link opens in a new windowUSPS.com or at a local post office.
- Consider changing withholding. Newly married couples must give their employers a new Link opens in a new windowForm W-4, Employee's Withholding Allowance Certificate, within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the Additional Medicare Tax. Use the IRS Withholding Calculator at IRS.gov to help complete a new Form W-4: Link opens in a new windowhttps://www.irs.gov/individuals/irs-withholding-calculator. See Link opens in a new windowPublication 505, Tax Withholding and Estimated Tax, for more information.
- Decide on a new filing status. Married people can choose to file their federal income taxes jointly or separately each year. While filing jointly is usually more beneficial, it's best to figure the tax both ways to find out which works best. Remember, if a couple is married as of December 31, the law says they're married for the whole year for tax purposes.
- Select the right tax form. Choosing the right income tax form can help save money. Newly married taxpayers may find they now have enough deductions to itemize them on their tax returns. Newlyweds can claim itemized deductions on Form 1040, but not on Form 1040A or Form 1040EZ.
Beware: Avoid scams!
The IRS will never initiate contact using social media or text message. First contact generally comes in the mail. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find out: Link opens in a new windowhttps://www.irs.gov/payments/view-your-tax-account.
Internal Revenue Service (IRS). (2017, July 19). Summer newlyweds should also think about taxes (IRS Summertime Tax Tip 2017-08). Retrieved January 23, 2019, from https://www.irs.gov/