Whether you're planning your marriage or have recently gotten married, you need to spend a few minutes thinking about how your new status will affect your taxes and your standing with the IRS. When you're in the middle of planning your nuptials the last thing you're thinking of is tax filing rules and regulations but it is something you want to think about once the honeymoon is over. If you have time, though before your wedding it might be helpful to pick up the forms you will need to complete once the ink has dried on your legal wedding documents.
Because the tax code is always changing, you may want to check with your accountant or a tax preparation official before you file your taxes. If you're accustomed to having filed your own taxes, it can be tricky to know what you will do now that you're newlyweds. Many people have heard of the "marriage penalty tax" and this can come into play when you have an adjusted gross income of more than $110,000 because at this level you could be phased out of personal exemptions and certain credits. Also, under the marriage penalty there are certain itemized deductions - this is why it's important to work with a knowledgeable tax preparation professional to make certain you're getting all of the benefits and credits to which you're entitled.
You and your spouse will also need to fill out paperwork with your human resources department to incorporate changes to your name. You may also need to change the amount of money that is withheld from your weekly paychecks. If you're married and continue to have your taxes withheld at the single rate you could be having too much taken out of your paycheck. Changing your name with the Social Security Administration and getting a new social security card will also need to be part of the changes you undertake after marriage. Don't forget to change your bank accounts and credit card information as well.
Have you moved to a new house or apartment? If so you will need to change your utilities as well as adding your spouse to the bill and changing the name on your utilities. Send a change of address form to the IRS - form 8822 - so you will continue to receive notifications. Additionally, you will need to change the beneficiaries on your life insurance and retirement policies. Talk to your insurance agent about the changes you need to make in your auto and homeowner policies as well.
Even though you're married it may be advantageous to file separate tax returns - based on your combined incomes. Again, speaking with a tax professional is the smartest move you can make.
Because the tax code is always changing, you may want to check with your accountant or a tax preparation official before you file your taxes. If you're accustomed to having filed your own taxes, it can be tricky to know what you will do now that you're newlyweds. Many people have heard of the "marriage penalty tax" and this can come into play when you have an adjusted gross income of more than $110,000 because at this level you could be phased out of personal exemptions and certain credits. Also, under the marriage penalty there are certain itemized deductions - this is why it's important to work with a knowledgeable tax preparation professional to make certain you're getting all of the benefits and credits to which you're entitled.
You and your spouse will also need to fill out paperwork with your human resources department to incorporate changes to your name. You may also need to change the amount of money that is withheld from your weekly paychecks. If you're married and continue to have your taxes withheld at the single rate you could be having too much taken out of your paycheck. Changing your name with the Social Security Administration and getting a new social security card will also need to be part of the changes you undertake after marriage. Don't forget to change your bank accounts and credit card information as well.
Have you moved to a new house or apartment? If so you will need to change your utilities as well as adding your spouse to the bill and changing the name on your utilities. Send a change of address form to the IRS - form 8822 - so you will continue to receive notifications. Additionally, you will need to change the beneficiaries on your life insurance and retirement policies. Talk to your insurance agent about the changes you need to make in your auto and homeowner policies as well.
Even though you're married it may be advantageous to file separate tax returns - based on your combined incomes. Again, speaking with a tax professional is the smartest move you can make.
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