Summer and Fall are usually big for wedding season. Soon-to-be-married taxpayers or "just married" taxpayers should be aware of their changing tax status. Although the last thing on your mind is taxes, while planning a wedding or coming home from your honeymoon, there are some important steps you should take to avoid stress at tax time.
  1. Notify the Social Security Administration. Report any name change to the Social Security Administration so your name and Social Security number will match when you file your next tax return. File a Form SS-5, Application for a Social Security Card, at your local SSA office. You can obtain the form on the SSA's website at www.ssa.gov or by calling (800) 772-1213.
  2. Notify the IRS if you move. If you have a new address you should notify the IRS by sending Form 8822, Change of Address.
  3. Notify the U.S. Postal Service. You should also notify the U.S. Postal Service when you move so it can forward any IRS correspondence or refunds. Here's a link to change your address online through USPS.com.
  4. Notify your employer. Report any name and address changes to your employer(s) to make sure you receive your form W-2, Wage and Tax Statement, after the end of the year.
  5. Check Your Withholding. If both you and your spouse work, your combined income may place you in a higher tax bracket. You can use the IRS Withholding Calculator available on www.irs.gov to assist you in determining the correct amount of withholding needed for your new filing status. After you work through this calculator, you may need to file a new Form W-4, with your employer and you should do the same for the state exemptions. Just be sure to remind your employer that you also want to update your State withholding and filing status. Here's a direct link to the withholding calculator.
  6. Select the right tax form. Choosing the right individual income tax form can help save you money. Newly married taxpayers may find that they now have enough deductions to itemize on their tax returns. Itemized deductions like unreimbursed employee expenses, charitable donations, medical deductions and more must be claimed on Schedule A and should be included with your Form 1040 (not 1040A or 1040EZ).
  7. Choose the best filing status. A person's marital status on Dec. 31 determines whether the person is considered married for that year. Generally, the tax law allows married couples to choose to file their federal income tax either jointly or separately in any given year. Figuring the tax both ways can determine which filing status will result in the lowest tax, but usually filing jointly is more beneficial.
For more information about any of these tips, please do not hesitate to contact me at (866) 236-8330 or send an email to info@hardgeconnections.com. I'm happy to help you navigate through it all because I know it can be overwhelming.