In honor of National Weddings Month, Keith Ross, Regional Director at Roni Deutch Tax Center, has written up these top tax tips for newlyweds or soon-to-be married couples:
â€œFor better, for worse, for richer, for poorer, in sickness and in health, till death do us part, and most of all, to lower our taxes.â€ Yes, that is correct: getting married and filing jointly can perhaps lower your taxes.
1. Filing jointly.
Being married allows you to file â€œMarried filing jointlyâ€, and this alone, can lower your taxes paid to the IRS each year. Once your combined adjusted gross income reaches above $7850, you may be able start saving on taxes. Although there is not a lot of savings, but every little bit helps.
2. Filing separately.
Filing separately may seem to be the solution when one party is normally accustomed to a tax refund and the other party pays into their taxes at the end of each year but the filing status â€œMarried Filing Separatelyâ€ could have its downfall, too.
For instance, you will not get to utilize certain credits filing this way, such as â€œEarned Income Credit or Education Creditsâ€ and if there are children to report on your return you are giving up on other credits, such as â€œChild Dependant Care Credit.â€ So consult with a tax professional before making your filing status choice. A lot can change, in regards to your tax matter, when tying the knot.
3. Name change.
When you are accepting the last name of your spouse, it is important to inform the Social Security Administration of your name change, prior to using your new last name on your future tax returns. (youâ€™ll need to complete and file form SS-5). By not submitting a SS-5 to Social Security, this may cause a processing delay in your tax return.
4. Taxes withheld.
You may also want to make proper changes to your Employee Withholding Allowance Certificate (W-4). Making the Change from â€œSingleâ€ toâ€ Marriedâ€ means having less federal tax withheld. This again may require consulting with your tax professional or the payroll department of your employer.
- Want more? Other marriage legalities and benefits…
Thanks to Keith Ross! Have an administrative marriage tip? Share below!