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Summer Wedding? These Tax Tips are for You

Here are some basic tips to help with your planning:

Name change. The names and Social Security numbers on your tax return must match your Social Security Administration records. If you change your name, report it to the SSA. To do that, file Form SS-5, Application for a Social Security Card. Get this form on SSA.gov, by calling 800-772-1213, or from your local SSA office.

Change tax withholding. Changing your marital status means you must give your employer a new Form W-4, Employee’s Withholding Allowance Certificate. If you and your spouse both work, your combined incomes may move you into a higher tax bracket, or you may be affected by the Additional Medicare Tax. Use the IRS Withholding Calculator tool at IRS.gov to help you complete a new Form W-4. See Publication 505, Tax Withholding and Estimated Tax, for more information.

Changes in circumstances. If you or your new spouse purchased Health Insurance Marketplace plan and receive advance payments of the premium tax credit in 2016, it is important that you report changes in circumstances. Reporting changes now will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance, which may affect your refund or balance due when you file your tax return. Circumstances that should be reported when they happen include – Changes in your income or family size and when you move out of the area covered by your current Marketplace plan.

Address change. Send the IRS Form 8822, Change of Address, to let them know if your address changes. You should also notify the U.S. Postal Service. You should also notify your Health Insurance Marketplace when you move out of the area covered by your current health care plan.

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Tax filing status. If you are married as of Dec. 31, that’s your marital status for the whole year for tax purposes. You and your spouse can choose to file your federal income tax return either jointly or separately each year. You may want to figure the tax both ways to find out which status results in the lowest tax.

Select the right tax form. Choosing the right income tax form can help save money. Newly married taxpayers may find that they now have enough deductions to itemize on their tax returns. Itemized deductions are claimed on a Form 1040, NOT Form 1040-A or Form 1040-EZ.

By C Fitts Tax Solutions, LLC Posted in Tax Talk