It’s that time of the year when everyone seems to be tying the knot and probably the last thing on the mind of a newlywed is their taxes. If you plan on getting married this year, here are some tax tips to help you have a long prosperous marriage and hopefully avoid some tax trouble.
Picking your filing status – As soon as you say, “I do”, your filling status has now changed. You will no longer be able to file as Single and now have two options to choose from: married filing jointly or married filing separately. This will change your status for the whole year, no matter when you get married.
Beware of the marriage tax penalty or the tax bonus – Depending on what type of income your new partner brings in will depend on if you will get a marriage bonus or a marriage penalty on your taxes that year. If you’re married and you file Married Jointly– you are combining your incomes for the first time, and this can cause the penalty or the bonus. A penalty typically occurs when two individuals with equal incomes marry, while a marriage bonus typically occurs when two individuals with disparate incomes marry.
The charitable side of marriage– If you haven’t decided on a venue to get married, you might consider a nonprofit venue and make a donation to use the space. Once it is time for you and your partner to start preparing your taxes you could use that donation as a tax deduction on your joint return! Also, if you decide to donate the leftover food from the wedding or your wedding dress, that can be a tax deduction.
Changing of the last name – If one of you decide to change your last name after the wedding, make sure to let the Social Security Administration know. To start the process, you will need to fill out the Form SS-5. You can get this form online, pick one up, or have them mail you one by calling 800-772-1213.
Changing your address – Do you plan on moving to your spouse’s house after the wedding? If so, don’t forget to tell the IRS and file the Form 8822. You need to tell the IRS of the address change to prevent a scammer from stealing your identity and filing a fraudulent return. Also, if you file with a different address from prior years, it could look suspicious to the IRS.
Share the new changes – Don’t forget to tell your workplace that you got married. They will need to know your new filing status, if you changed your last name, and lastly if you moved. You want to make sure they know, so all your information is correct on your W-2 and Tax Statement Form.
If you or your partner need help filing your federal tax returns or need help paying back taxes, Polston Tax can help! Our team of tax attorneys are here to fight for you everyday! Call us today at 844-841-9857 or click below to schedule your free consultation!