There are a lot of details for planning a wedding.
Don’t forget about tax planning!
It’s June–the month of weddings. Why is that? There are a few theories as to why June became the traditional month to get married.
In The Old Farmer’s Almanac, Christine Schultz writes that it may relate to the goddess Juno, believed to be the protector of women especially in matters of the heart as well as childbearing. Another theory involves Celtic calendar rituals. It could also have come about as a matter of favorable weather conditions common in June.
Today, it is likely a matter of convenience, as people tend to take vacations and travel in the summer.
If you or a family member is getting married this year, you know there are a lot of details in planning a wedding. Along with the cake, the gift registry, the destination/venue, etc., the first tax return as a married couple should be on the checklist.
In addition, if you are a wedding planner, adding “Things You Should Know About Your Tax Status After You Say ‘I Do’” to your portfolio could help you bring a unique value-added service to your clients. It would also be a good idea to suggest they seek the services of a tax professional for complicated matters.
Here are five simple steps that can make filing their first tax return as newlyweds less stressful:
Step 1
Each person should check their withholding at the beginning of each year, or when their personal circumstances change — like after getting married. Using the IRS Withholding Calculator is a good way to check their withholding. Individuals who need to change their withholding should complete and submit a new Form W-4, Employee’s Withholding Allowance Certificate, to their employer.
Step 2
Marriage may mean a change in name. If either – or both – of the newlyweds legally change their name, it’s important to report that change to the Social Security Administration. The names on the taxpayers’ tax return must match the names on file at the SSA. If it doesn’t, it could delay any refund.
Step 3
If marriage means a change in address, the IRS and the U.S. Postal Service need to know. Newlyweds can file Form 8822, Change of Address, to update their mailing address with the IRS. They should notify the postal service to forward their mail by going online at USPS.com or by visiting their local post office.
Step 4
Individuals who receive advance payments of the premium tax credit should report changes in circumstances to their Health Insurance Marketplace as they happen. Certain changes to household, income, or family size may affect the amount of the premium tax credit. This can affect a tax refund or the amount of tax owed. Individuals should also notify the Marketplace when they move out of the area covered by their current Marketplace plan.
Step 5
Newlyweds should consider their filing status. A taxpayer’s marital status on December 31 determines whether they are considered married for that full year. Generally, the tax law allows married couples to file their federal income tax return either jointly or separately in any given year. Taxpayers can use the Interactive Tax Assistant to determine which status is best for them.
Bayshore CPA’s, P.A. are your local Certified Public Accountants
and Tax Resolution Specialists conveniently located
in Mooresville, North Carolina
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