Summer Weddings and Taxes

Summer is a popular season for weddings, and a wedding means changes in your tax situation.  So after the honeymoon, you should take some time to think about what your recent wedding means for your taxes.

Filing Status

Even if you are planning to wed on New Year’s Eve, if you are married on December 31, the IRS considers you married for the whole year!  That limits your filing choices to either married filing jointly or married filing separately.  Married couples who file separately lose out on many tax breaks.  Most of our clients have a lower tax bill if they file jointly.

Changing your Name?

If you plan to change your name after marriage, make sure Social Security knows about it!  Avoid problems when you file your tax return with your new name.  Complete and file Form SS-5 – Application for a Social Security Card with your new name.  Get the form from your local Social Security Office or go to www.SSA.gov to download it online.

Why is My Tax Refund Less Than My Friend’s?

This is a question that clients ask their CPA’s every year.  While it does seem unfair that your co-worker who says he earns the same as you and claims the same withholding status and exemptions as you, gets a bigger refund every year –there are many reasons why this happens.  When you look at all the pieces of information that go into a tax return, it is easier to see that no two situations are ever really the same.

Your salary and withholding tax are only two pieces of a much bigger puzzle.  Income, deductions, number of exemptions, tax credits, phase-out of exemptions, deductions and credits, as well as withholding and estimated tax payments, are all factors in determining the amount of your refund or (gasp!) the amount you owe the government at year end. 

First, your annual income tax calculation starts with ALL sources of taxable income for the year.  In addition to your weekly paycheck, this can include your spouse’s salary, interest, dividends, capital gains or losses, unemployment, retirement distributions, social security, rental income, small business income, cancelled debts, alimony, gambling winnings, and even bribes!

Sandra G. Johnson, CPA accepted to 10,000 Small Businesses

For Immediate Release

Bellmore, NY – July 17, 2014 at 2:00 PM, Sandy Johnson has been selected from hundreds of applicants to participate in the Goldman Sachs 10,000 Small Businesses leadership program.  Goldman Sachs 10,000 Small Businesses is a $500 million national program designed to help small businesses in the United States create jobs and economic growth by providing entrepreneurs with a practical business education, access to capital and business support services.* Sandy and her contemporaries will attend classes at LaGuardia Community College in this extensive four month program. 

To date only 2,519 entrepreneurs in the US have been chosen to participate.  This nationwide program currently operates in Chicago, Cleveland, Detroit, Houston, Long Beach, Los Angeles, Miami, New Orleans, New York, Philadelphia and Salt Lake City.  In June 2014, it was announced that former NYC Mayor Michael Bloomberg will join Goldman Sachs Chairman and CEO Lloyd Blankfein, Warren Buffett and Dr. Michael Porter as co-chair of the Goldman Sachs 10,000 Small Businesses Advisory Council.*

Sandy is looking forward to the education and opportunities that will be afforded her as a result of participating in 10,000 Small Businesses.

*Goldman Sachs 10,000 Small Businesses, http://www.goldmansachs.com/citizenship/10000-small-businesses/US/