- Posted by DasBrooks
- in Strategy
- Comments Off on Tax Tips for Newlyweds
Updating your status from “single” to “married” may bring about some unanticipated changes – tax changes, that is. Here are the things your wedding planner didn’t tell you:
1. Notify the Social Security Administration if you change your name. Your name and social security number must match. If you get married during tax season, make sure your name change has processed before filing your taxes, or file under your maiden name. It typically takes about two weeks to process a name change.
2. Notify the IRS of your new address. Post offices typically won’t forward a refund check, if you aren’t having yours direct-deposited.
3. Fill out a new W-4 with your employer. Update your name, address, and status so your end-of-year W-2 is correct. Keep in mind that you and your spouse’s combined income may move you into a higher tax bracket, and you may want to have more withheld from your check.
About your filing status: Married couples have the choice to file jointly or separately. There are a number of reasons why you may still want to file separately from your new spouse:
1. If both spouses have separate itemized deductions, such as separate businesses or medical expenses, each may be able to claim higher overall deductions on separate filings.
2. If one spouse has past due debt with the IRS, child support office, or student loans, filing separately will prevent the other spouse’s share of any refund from being applied to those debts.
3. If one spouse has missing records, has not filed regularly, or has other tax or audit risks, filing separately will protect the other spouse from any penalties or potential issues down the road.
So while we can’t help with the rest of the changes your new marriage is bringing to your life, hopefully these tips will help you navigate the tax changes. And congratulations!
—Misty, for Das-Brooks