Tax Tips for Newlyweds
July 27, 2016 4:10 PM
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Junes over
Looking for a gift to give after all those June weddings? How about some solid tax advice for the newlyweds?
Taxes may not be top-of-mind for most new couples, but there are some important tax issues they should be aware of, so the IRS put together the following set of tips.
A text-only version of this slideshow is availablehere.
Taxes may not be top-of-mind for most new couples, but there are some important tax issues they should be aware of, so the IRS put together the following set of tips.
A text-only version of this slideshow is available
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New names?
Whether one of the spouses takes the others name or not, the names and Social Securities on their tax return must match their Social Security Administration records so if any names are changed, theyll need to report it to the SSA with Form SS-5, Application for a Social Security Card.
The form is available on www.ssa.gov, or by calling (800) 772-1213.
The form is available on www.ssa.gov, or by calling (800) 772-1213.
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Congratulations youre in a new bracket!
The spouses new marital status needs to be reported to their employers on a new Form W-4, Employee's Withholding Allowance Certificate.
And the IRS was quick to point out that the new couples combined income may move them into a higher tax bracket.
And the IRS was quick to point out that the new couples combined income may move them into a higher tax bracket.
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Crossing the threshold
If either of the newlyweds is moving, theyll want to let the IRS know, with Form 8822, Change of Address. (They should probably also let the Post Office know, too.)
Dont make them come looking.
Dont make them come looking.
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Married? Filing jointly?
If the couple is married as of December 31, thats their marital status for the whole year for tax purposes and that means they need to decide whether to file jointly or separately. Which one is better depends on the couples individual circumstances, so theyll want to check out both possibilities.
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New forms
Combined financial lives may mean a higher tax bracket, but they can also mean more benefits from itemizing which would mean claiming those deductions on a Form 1040, as opposed to a 1040A or 1040EZ.
This would be a good area for a friendly tax advisor to offer some advice
This would be a good area for a friendly tax advisor to offer some advice
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Yes, theres an Obamacare angle
If either spouse bought a Health Insurance Marketplace plan got an Advanced Premium Tax Credit this year, they need to report any changes in circumstance, like income or family size. They should also alert their Marketplace is they moved out of its area.
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More IRS resources
The tax services offers a host of resources for new couples, including videos (like this one on Getting Married) and more.
No need to send them a thank-you card.
No need to send them a thank-you card.
