Federal, State, Local and International Taxes - If you’ve recently updated your status from single to married, you’re not alone – late spring and summertime is a popular period for weddings. Marriage also brings about some changes with your taxes. Here are several tips for newlyweds from the IRS.
· Notify the Social Security Administration - It’s important that your name and Social Security number match on your next tax return, so if you’ve taken on a new name, report the change to the Social Security Administration.
· Notify the U.S. Postal Service - To ensure your mail – including mail from the IRS – is forwarded to your new address, you’ll need to notify the U.S. Postal Service. Submit a forwarding request online at www.usps.com or visit your local post office.
· Notify your employer - Report your name and/or address change to your employer(s) to make sure you receive your Form W-2, Wage and Tax Statement, after the end of the year.
· Check your withholding - If you both work, keep in mind that you and your spouse’s combined income may move you into a higher tax bracket.
· Select the right tax form - Choose your individual income tax form wisely because it can help save you money. Newlywed taxpayers may find that they now have enough deductions to itemize on their tax returns rather than taking the standard deduction. Itemized deductions must be claimed on a Form 1040, not a 1040A or 1040EZ.
· Choose the best filing status - A person’s marital status on Dec. 31 determines whether the person is considered married for that year for tax purposes. Tax law generally allows married couples to choose to file their federal income tax return either jointly or separately in any given year. Figuring the tax both ways can determine which filing status will result in the lowest tax, but filing jointly is usually more beneficial.
Bottom line: planning for your wedding may be over, but don’t forget about planning for the tax-related changes that marriage brings.
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Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll free
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