Marriage may change certain tax-related issues, so it is important for newlyweds to understand the impact of marriage on their taxes and what needs to be done after the ceremony to ensure a smooth transition into married life. Newlyweds should consider the following tax-related issues after marriage:
Name and Address Change
– A name change should be promptly reported to the Social Security Administration (SSA) to ensure the name on their tax return matches the name on file at the SSA. A different name associated with a Social Security Number can impede and even prevent the processing of an individual tax return.
– This information can be updated by filing Form SS-5, Application for a Social Security Card.
– Any address change should also be reported to the IRS and the U.S. Postal Service. To notify the IRS of an address change, Form 8822, Change of Address must be filed. The postal service can be notified of an address change by going online to USPS.com or visiting a local post office.
– Newlyweds should also review their tax withholding and consider making the appropriate changes. Some things to consider include a potential change in tax bracket or any additional taxes such as Medicare. Couples must give a new Form W-4, Employee’s Withholding Allowance to their employer within 10 days after changing filing status to withhold the appropriate amount of federal income tax.
– Tools, such as a Tax Withholding Estimator, are available to help complete new Forms W-4.
– Married couples have the opportunity to file their federal income taxes jointly or separately each year. Each couple should evaluate their circumstances to determine what filing status works best for them. It is also important to note that if a couple is married as of December 31, they are considered married for the whole year for tax purposes.