Below are five basic tax tips for newlyweds…
1.) Most couples derive a greater benefit by filing their taxes jointly. However, the combination of both taxable incomes can put you in a larger tax bracket, which you need to be prepared for. Using the previous year’s tax returns will help determine the coming year’s outcome. This is particularly important if one of the parties has been filing as ‘Head of the Household’ including dependants and enjoying the ‘Earned Income Tax Credit.’
2.) You may find that you are now able to itemize deductions instead of taking the standard deduction. If this is the case, it is essential that you begin tracking the following expenses in order to maximize deductions:
– Vehicle registration fees
– Property taxes
– Mortgage interest
– Medical expenses
– Cash and noncash charitable contributions
– Financial management and advisory fees
– Cost of tax prep software
– Tax planning and preparation fees
3.) If your liability will be greater as a married couple and you work for W2 wages, file a new Form W4 with your employer to take fewer exemptions. This will decrease your take home pay, but will save you from receiving a nasty surprise next April 15th.
4.) If you change your name, be sure to contact your local Social Security Administration office and get a new social security card. You will need to set an appointment and present your marriage certificate and birth certificate to get your new social security card.
5.) If you were not previously living together, you should update this information with your employer to make sure you receive your W2 from at the correct address in January. You will also need to inform the IRS of your address change.
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