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Tax Changes for Newly Weds

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Taxes may not be high on your summer wedding plan checklist. Yet, you should be aware of the tax issues that relate to marriage. The IRS Summertime Tax Tip 2014-02 provides the following tips to keep issues to the minimum:

Name change.  If you change your name, report it to the SSA by filing out the Form SS-5, Application for a Social Security Card. The names and Social Security numbers on your tax return must match your Social Security Administration records.

Change tax withholding.  A change in your marital status means you must give your employer a new Form W-4. If you and your spouse both work, your combined incomes may move you into a higher tax bracket, necessitating a higher rate of withholding.

Changes in circumstances.  If you receive advance payment of the premium tax credit in 2014, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan.

Address change.  Let the IRS know if your address changes. To do that, file Form 8822, Change of Address, with the IRS.

Change in filing status.  If you’re married as of Dec. 31, that’s your marital status for the whole year for tax purposes. You and your spouse can choose to file your federal income tax return either jointly or separately each year. You may want to figure the tax both ways to find out which status results in the lowest tax.

Note for same-sex married couples: If you are legally married in a state or country that recognizes same-sex marriage, you generally must file as married on your federal tax return. This is true even if you and your spouse later live in a state or country that does not recognize same-sex marriage.

For advanced tax planning, book your free consultation today at http://capitalproalliance.com/helpstep1_individual_tax/