Tax Checklist for Newlyweds
Summertime is common time for wedding bells to ring, and newlyweds can make their tax filing easier by doing a few things now. A taxpayer’s marital status as of December 31 determines their tax filing options for the entire year, but that’s not all newlyweds need to know. (I’ve underlined several passages.)
Report a name change
Report any name changes to the Social Security Administration. The name on a person’s tax return must match what’s on file at the SSA. Otherwise, it could delay any tax refund. Taxpayers should file Form SS-5, Application for a Social Security Card with their updated information. It’s available on SSA.gov, by phone at 800-772-1213 or at a local SSA office.
Update address
Notify their local post office, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must compete and submit Form 8822, Change of Address. (See link under More Information.)
Check withholding
Newly married couples must give their employers a new Form W-4, Employee’s Withholding Certificate, within 10 days. If both people work, this could move them into a higher tax bracket or be affected by the additional Medicare tax. The Tax Withholding Estimator on IRS.gov can be used to check withholding and provide tips for completing a new Form W-4.
Review filing status
Married people can choose to file their federal income taxes jointly or separately. While filing jointly is usually more beneficial, it’s best to figure the tax both ways to find out which makes the most sense—for sure.
Other thoughts from DGE
- When establishing your withholding rates, remember: setting your rates so you get a big refund check is “lending money to the federal government at no interest.” Meanwhile, some people are paying high interest on credit debt and lending money to the IRS at no interest. Very patriotic, but not retirement smart.
- Consider getting estimates of value of all real estate owned. Could need later.
- Review the rules of the $250,000 or $500,000 capital gains exclusion on sales of a home. Some are tricky. Such as who owned, who occupied, and whether only one person needs to qualify. Any questions, consult a knowledgeable real estate professional.
From Duane:
I have been married for over 68 years. Welcome to the institution. It’s a journey, and I really recommend it above all others. Best of luck.
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