As you probably know, the most popular month to get married in is June, followed by October. As newlyweds, the last thing on your mind are probably taxes, however when the wedding day bliss is over, there are a few things you should take care of!
- Notify officials of your name change! If one of you is changing your surname, either completely or by hyphenating, you need to let Uncle Sam know. Do so by downloading Form SS-5 from the Social Security Administration website, picking up the form from your local SSA office or by calling (800) 772-1213. This will ensure that your new name and Social Security number match when you file your next tax return.
- Change your address – Whether you’re moving into your spouse’s place or finding a home new together, let the IRS know by filing Form 8822. Both spouses who previously filed as single taxpayers need to send in this form. Why, you ask? In this time of increased security to stem tax identity theft, the agency is looking at any return changes from year to year. This form will help the IRS know it’s still the real you; just at a new location.
- Adjust your withholding – If you and your spouse both work, your new combined income could push you into a higher tax bracket when you file your first joint tax return. The IRS’ online withholding calculator can help you figure out the correct amount of payroll taxes that should come from each paycheck. Then let your employer know by filling out a new Form W-4.
- Inform the healthcare marketplace – If you get your medical coverage from an Affordable Care Act, or ACA, marketplace, report your changed circumstances to your exchange. Your new wedded status and any other changes, such as your new spouse’s children joining your family, will affect advance payments of the ACA premium tax credit. This credit, which is the subsidy that the Supreme Court ruled is OK for policies bought at both the federal and state exchanges, is used by millions to help them pay for Obamacare coverage. Making the marketplace change in a timely manner will help you avoid getting a smaller refund or an unexpected tax bill when you file your taxes next year.
- New benefit status – In addition to letting your employer know about withholding adjustments, be sure to change the beneficiary of your tax-favored workplace 401(k) plan. Your marriage also could affect your contributions to your pre-tax flexible spending account and your employer-provided health insurance.
- Make note of your new filing status – Married couples generally enjoy better tax results when they file a joint return. But since every couple’s situation is different, sometimes it’s better to file as married filing separately. Take some time to look at which filing status will work better for you and set up tax strategies now to accommodate that choice, well before your Form 1040 is due next April 15! Your married filing jointly or separately choice isn’t like your wedding vows – It’s not permanent! You can change it each year as your tax situation dictates.
Still in the wedding planning phase? Take note that your marital tax-filing status applies for the full year, whether you got married on Jan. 1 or June 15 or Dec. 31. If you’re married at any time during the tax year, be it 365 days or just one, the IRS considers you married for the entire year for tax purposes.
This can all seem overwhelming and confusing! Don’t get stressed! Call the experts at Tax Alternatives in Brentwood, TN to discuss your options! 615-742-1099 and visit us HERE to sign up for a FREE 30-minute consultation!
Our office is conveniently located at 105 Westpark Drive, Suite 440 Brentwood, TN 37027.