If you and your loved one recently got married, the following need to be considered so that when April 15 rolls around, you have everything under control.
- What will the married name be? If the wife is going to use her husband’s surname, she will need to report the name change to the Social Security Administration (SSA) using Form SS-5, Application for a Social Security Card. When the IRS receives an electronically filed 1040 tax return, it matches the names of the husband and wife against the SSA’s records. If the name, date of birth, or social security number does not match, the IRS will not accept the e-filed tax return.
- Will the spouses be using a different mailing address? IRS Form 8822 can be used to report an address change to the IRS.
- Report any name change or address change to the employer. Doing so will allow the W-2 to match the names and addresses used in the filing of Form 1040. In addition, for those employees subject to the local earned income tax (EIT), the amount of tax withheld is dependent upon where you reside. PA residents will need to file a certificate of residence with the employer to ensure that the proper amount of local EIT is withheld.
- Notify other payees (e.g., banks, brokers, financial advisors, insurance companies, pension administrators) of any name or address change
- Know that your marriage filing status (single, head of household, married filing separately, married filing jointly) is determined as of December 31 of the tax year, regardless of when you got married during the year. In other words, if you got married on December 29, you would be considered married for tax purposes for that entire tax year within which December 29 fell.
- Talk to your CPA about your filing status and your federal income tax withholding allowances. When a couple combines their income on a tax return, it is possible that they may find themselves in a higher tax bracket. You filing status change may require that you complete a revised W-4 withholding allowance form. What should your filing status be? Usually married couples find that married filing jointly to be the most beneficial to them (they pay the least in taxes). However, there are some cases where married filing separately makes more sense. When a couple files married filing jointly, each spouse becomes jointly liable for the taxes due. So if one spouse is doing something that is questionable, the other spouse needs to think very carefully about signing the joint return as the second spouse will be liable for the other spouse’s tax debt.
- When filing tax returns as a single person, it may not have made sense to itemize your tax deductions. When filing with the other spouse, it may now make sense to itemize tax deductions.
Note: Because each individual has unique factors needs that need to be examined when determining that individual’s tax situation, we invite you to call 610-594-2601 today to make an appointment to discuss your personal tax situation. You can also schedule a free consultation at Click Here. To learn more about various tax and business services, visit Tax Preparation Services and Small Business Accounting Services
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