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.
Withholding Tax and
Your Paycheck
Your new Filing Status means different withholding
rates. Consider contacting your CPA and
asking for a Tax Projection. Be ready to
provide copies of your latest pay stub, as well as your new spouse’s
paystub. You may also need to provide
copies of prior year tax returns if one of you is changing CPA’s. Let your CPA know if you bought a house, had
a child or anything else that you think may impact your taxes. Your CPA can estimate the changes in your tax
bill and help you adjust the taxes withheld from your paychecks. This can help avoid a huge unexpected tax
bill in April!
Health Insurance
Weddings mean reevaluating your health insurance coverage. If either or both of you have health insurance
through the Health Insurance Marketplace, you must log in to your account and
Report Changes in Circumstances as soon as possible. Getting married may open a 60 day period
from the wedding during which you can enroll in new coverage which may qualify
you for more or less savings. If both of
you have plans through your employers, compare plan costs to see which will
offer you the best coverage at the best price.
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