Fiducial’s Must-Have Tax Tips for Recently Married Taxpayers
- Find out what may happen at tax time if your SSN doesn’t match your name.
- Learn why you should notify contractors of your new marital status.
- The Internal Revenue Service needs your new address.
- Notifying the U.S. Postal Service of a new address will keep notifications from the IRS arriving on time.
- Learn why you should review withholding and estimated tax payments.
- Find out why notifying the health insurance marketplace is so important.
This is the time of year for many couples to tie the knot. Recently married taxpayers should have a to-do list of post-ceremony actions regarding taxes. But don’t worry if you don’t know where to start – Fiducial does! If you have just married, Fiducial offers some post-marriage tax tips to help you avoid stress at tax time.
Recently Married Taxpayers Should Notify the Social Security Administration
Report any name change to the Social Security Administration so that your name and SSN will match when filing your next tax return. Informing the SSA of a name change is quite simple. File a Form SS-5, Application for a Social Security Card at your local SSA office. The form is available on SSA’s website, by calling 800-772-1213, or at local offices. Your income tax refund may be delayed if your name and SSN don’t match at the time your return is filed.
Recently Married Taxpayers Should Notify Those Paying Them as a Contractor
If you are a self-employed sole proprietor filing your business income and expenses on a Schedule C, and you have a different name now that you are married, notify anyone who has been issuing you a Form 1099 (including a Form 1099-NEC) under your Social Security number about the name change. This will prevent a mismatch with the IRS.
Recently Married Taxpayers Should Notify the IRS
If you have a new address, you should notify the IRS by sending in a completed Form 8822, Change of Address. If your state has an income tax, also notify the appropriate tax agency.
Recently Married Taxpayers Should Notify the U.S. Postal Service
You should also notify the U.S. Postal Service when you move so that any IRS or state tax agency correspondence can be forwarded.
Review Your Withholding and Estimated Tax Payments
If both you and your new spouse work, your combined income may place you in a higher tax bracket, and you may have an unpleasant surprise when we prepare your joint return for the first time. On the other hand, if only one of you works, filing jointly with your new spouse can provide a significant tax benefit, enabling you to reduce your withholding or estimated payments. In either case, it may be appropriate to review your withholding (W-4 status) and estimated tax payments, if any, for the year to make sure that you are not going to be under-withheld and that you don’t set yourself up to receive bad news for the next filing season. Even if no adjustment is needed with your tax withholding, you will still need to advise your employer of your new marital status and name change, if applicable.
Notify the Marketplace
If you or your spouse have health insurance through a government Marketplace (Exchange), you must notify the Marketplace of your change in marital status. If you were included on a parent’s health insurance policy through a Marketplace, then the parent must notify the Marketplace. Failure to notify the Marketplace can create tax filing problems.
Have questions about the impact of your new marital status on your taxes? Call Fiducial at 1-866-FIDUCIAL or make an appointment at one of our office locations to discuss your situation.
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