Please note the information below is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the receipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of the information provided below should not be acted upon without specific professional guidance. Please call us if you have any questions.
Taxes may not be on the top of most new couples, but there are some important tax issues that you should be aware.
- New names? Whether one of you takes the other’s name or not, the names and Social Securities on your tax return must match the Social Security Administration records – so if any names are changed, you will need to report it to the SSA with Form SS-5, Application for a Social Security Card. The form is available on www.ssa.gov, or by calling (800) 772-1213.
- Congratulations – you’re in a new bracket! Your new marital status needs to be reported to your employers on a new Form W-4, Employee's Withholding Allowance Certificate. Your new combined income may move into a higher tax bracket. It is good to speak to a CPA to project out your tax liability.
- Yes, there’s an Obamacare angle. If either of you bought a Health Insurance Marketplace plan and received an Advanced Premium Tax Credit this year, you will need to report any changes in circumstance, like income or family size.
- Crossing the threshold. If either of you are moving, you will want to let the IRS know, with Form 8822, Change of Address. (You should probably also let the Post Office know, too.) Don’t make them come looking.
- Married? Filing jointly? If you are married as of December 31, that’s your marital status for the whole year for tax purposes – and that means you need to decide whether to file jointly or separately. Which one is better depends on your individual circumstances, so you will want to check out both possibilities.
- New forms. Combined financial lives may mean a higher tax bracket, but they can also mean more benefits from itemizing – which would mean claiming those deductions on a Form 1040, as opposed to a 1040A or 1040EZ.