Here are 7 ways tax pros can help clients who are tying the knot.
Tax tips for June weddings
June 2, 2017 5:22 PM
scofieldza - stock.adobe.com
<P>
In all the frenzy that goes into the June wedding season, the last thing and bride- or groomzilla is thinking about is their tax situation – but as Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting points out, there are a host of tax issues that kick in when you say, “I do.”
Luscombe suggested a number of areas where a tax practitioner’s expertise may be particularly useful to the newlyweds.
Luscombe suggested a number of areas where a tax practitioner’s expertise may be particularly useful to the newlyweds.
ele - stock.adobe.com
1. Help them pick a filing status
Depending on the newlyweds’ financial situation, there may be pros and cons to filing jointly or separately.
elitravo - Fotolia
2. Spread the word on name changes
If either spouse’s name will change on the tax return, a matching change should be registered with the Social Security Administration.
vincent20044 - stock.adobe.com
3. Help sort out their benefits
All sorts of employee benefits – most obviously health care insurance – are extended to spouses, which can mean making some complicated choices.
WavebreakMediaMicro - stock.adobe.com
4. Check their withholding
With the potential for a new filing status, new dependents, and maybe two income streams, it makes sense to review the newlyweds’ W-4 and check if they’re withholding too little or too much.
emilijamanevska - stock.adobe.com
5. Find some charitable deductions
Is the happy couple using a charitable organization’s facilities for their wedding or reception? Or are they donating any wedding leftovers?
biker3 - stock.adobe.com
6. Did they get help paying for the wedding?
Given how expensive weddings have become – the average event costs around $35,000, according to Wolters Kluwer -- if parents or grandparents paid for expenses related to the special day, there may be gift tax issues.
elitravo - stock.adobe.com
7. Be careful with promotional items
Extra items from wedding vendors – a “free” tuxedo, extra flower arrangements, or the like – and other special deals may have tax consequences.
