Business & Finance Taxes

Tax Tips for New Couples

Summer is the time when couples make that magical leap of faith known as marriage. Getting married can be hectic between the dinners, parties, wedding, reception, honeymoon and so on. Eventually, you have to come back down to earth and daily life. One of the things you'll need to keep in mind is the issue of taxes.

The first issue to consider is whether you'll be filing jointly or separately. You've probably heard that getting married can be bad from a tax perspective. This used to be very true, but things are more muddled now. The issue depends primarily on the earnings and financial situation of you and your new spouse. Sitting down with a CPA to come up with a plan is money well spent as you can save thousands on taxes. Once you have a plan in place, make sure any necessary changes to your paycheck withholdings are made.

On a more practical level, you need to make sure your information is updated in the tax system. Doing so is to your benefit as well as the IRS. If you've changed your last name, you'll need to contact the Social Security Administration to let them know. The form you will need to file is SS-5. By filing this, you'll ensure the taxes you pay for social security each year are credited to the right account and in the right amount.

Your next step is to notify the IRS of any change in your home address. The agency assumes it has the correct address and sends notices by mail. These notices can be bad [audits] or good [refunds], but they cannot be ignored. The onus is on your to keep your address up to date. You can download Form 8822 from the IRS website, fill it out and send it in.

The only other step is to make sure your employer has any updates on your information. They'll need that when issuing the W-2 and payroll tax information.

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