As you begin your new life as a married couple, you’re likely not thinking about your taxes. After saying “I do”, however, you may want to create a checklist of items to review that can affect your tax situation.
The Internal Revenue Service suggests updating changes to your name, address, withholding and filing status to start.
- Name | When a name changes through marriage, it is important to report that change to the Social Security Administration (SSA). The name on a person’s tax return must match what is on file at the SSA. If it doesn’t, it could delay any tax refund. To update information, taxpayers should file Form SS-5, Application for a Social Security Card. It is available on ssa.gov, by calling 800.772.1213 or at a local SSA office.
- Address | If marriage means a change of address, the IRS and U.S. Postal Service need to know. To do that, people should send the IRS Form 8822, Change of Address. Taxpayers should also notify the postal service to forward their mail by going online at usps.com or their local post office.
- Withholding | After getting married, couples should consider changing their withholding. Newly married couples should give their employers a new Form W-4, Employee’s Withholding Allowance within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the Additional Medicare Tax. They can use the IRS Withholding Estimator on IRS.gov to help complete a new Form W-4. See Publication 505, Tax Withholding and Estimated Tax for more information.
- Filing Status | Married people can choose to file their federal income taxes jointly or separately each year. While filing jointly is usually more beneficial, it’s best to figure the tax both ways to find out which works best. Remember, if a couple is married as of December 31, the law says they’re married for the whole year for tax purposes.
- Tax Preparation | If you have both used professional tax preparation in the past, you need to determine who your preparer will be once you are married. You can probably select either of the preparers you used individually. Talk to the preparers and ask for an estimate of what they would charge to prepare your returns or start fresh with a new preparer.
As you begin your journey as a married couple, Busey’s experienced team of financial planning experts can help you prepare for the days ahead. Through a holistic and personalized approach, we are committed to simplifying the complexities you encounter and maximizing your financial opportunities. For more information, visit busey.com/wealth-management.
For more details on tax considerations, please visit IRS.gov and/or consult with your legal advisors.
This is not intended to provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Clients should obtain their own independent tax advice based on their particular circumstances.
This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.
This presentation is for general information purposes only. It does not take into account the particular investment objectives, restrictions, tax and financial situation or other needs of any specific client.
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