Marriage Impacts Your Finances

Find some time to discuss these topics before walking down the aisle.

1. Combine it all, keep it separate, or a little of both; consider what strategy will work best for the both of you when setting up your bank accounts.

2. A little mystery keeps things interesting – but not when it comes to your future spouse’s financial investments!  We live in an electronic world, where many of us keep our investments online with no paper trail.  Will your spouse know how to access all your accounts if something happens to you?  Many brokers no longer mail necessary tax forms and require them to be printed from their websites – make sure you both know how to gain access.

3. Know what financial baggage each of you brings to the relationship.  Do you have a huge debt to pay off, have you filed for bankruptcy, and are you up to date on required tax filings?

4. Evaluate your health – insurance, that is.  Will you combine coverage to save money, or keep separate policies?  If you have coverage through the Health marketplace, you’ll need to re-evaluate your coverage.  Consider getting new quotes for car, home or renter’s insurance, and an umbrella policy if you own a home.

5. Ask your tax advisor about adjusting your tax withholding.  Your tax situation changes once you’re married and could result in a bigger (or smaller) tax bill.  Plan ahead to make sure you know what to expect to avoid an unwelcome surprise at tax time.

6. Evaluate and maximize your retirement strategies.  Your marriage and the resulting combined income may impact your ability to continue making IRA contributions.

7. Draft your wills!  This is at the top of the list of must do’s, but understandably gets put off since no one likes to think about death.   

By: Honorine M. Campisi, Senior Tax Manager

Tax Benefits for Members of the Military

May is National Military Appreciation Month!

The IRS wants you to know about the many tax benefits available to members of the military and their families.

1. The Voluntary Income Tax Assistance (VITA) program partners with the military to provide free tax preparation to service members and their families at bases in the USA and around the world.
2.  If a service member prepares their own return the IRS provides free electronic filing using the IRS Free File program.
3. Combat pay is partly or fully tax free.
4. Service members stationed abroad have until June 15^th to file their federal income tax return.  Those serving in a combat zone have even longer to file their returns.  They have until 180 days after they leave the combat zone to file.
5. Eligible unreimbursed moving expenses are deductible.
6. Reservists whose duties take them more than 100 miles from home can deduct their unreimbursed travel expenses even if they don’t itemize their deductions.
7. Low and moderate income service members often qualify for additional tax benefits such the Earned Income Tax Credit.
8.  Low and moderate income service members who contribute to an IRA can often claim the retirement savings contributions credit. 

Feel free to call our office to find out more information!

By: Chris Murphy, Senior Accounting Manager

Who Else Is Using Your Identity?

These days it seems like everyone knows someone who has had their credit card hacked, been scammed over the phone or computer.  Even the IRS is grappling with the issue of fraud and identity theft.  According to the IRS, identity theft tax refund fraud is its number one fraud.  This happens when someone steals an individual’s personal information, files a fraudulent tax return using someone else’s social security number and has the refund deposited into their own account.  Often, the victim is unaware of what happened until they try to file their own tax return.