If you are preparing for summer nuptials, make sure you do some tax planning as well. A few steps taken now can make tax time easier next year. Use these tips to help keep tax issues that may arise from your marriage to a minimum:
Change of name. All the names and Social Security numbers on your tax return must match your Social Security Administration records. File Form SS-5, Application for a Social Security Card to do this.
Change tax withholding. Consider changing your income tax withholding by giving a new Form W-4, Employee’s Withholding Allowance Certificate, to your employer. The withholding rate for married people is lower than for those who are single. Some married people find that they do not have enough tax withheld at the married rate. This can happen if you and your spouse both work.
Changes in circumstances. If you receive advance payments of the premium tax credit you should report changes in circumstances, such as your marriage, to your Health Insurance Marketplace. Other changes that you should report include a change in your income or family size. Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes in circumstances will allow the Marketplace to adjust your advance credit payments. This adjustment will help you avoid getting a smaller refund or owing money that you did not expect to owe on your federal tax return.
Change of address. Let the IRS know if you move. To do that, file Form 8822, Change of Address, with the IRS. You should also notify the U.S. Postal Service. You can change your address online at USPS.com, or report the change at your local post office.
Change in filing status. If you are married as of Dec. 31, that is your marital status for the entire year for tax purposes. You and your spouse can choose to file your federal tax return jointly or separately each year. It is a good idea to figure your tax both ways so you can choose the status that results in the least tax.