Did you or are you planning to get married this summer? First, congratulations! Second, even though it may not be at the top of your summer wedding plan checklist, have you considered some of the tax issues that go along with tying the knot?
If not, the IRS has provided the following five basic tax tips that can help keep those issues to a minimum.
1. Name change: The names and Social Security numbers on your tax return must match your Social Security Administration (SSA) records. If you change your name, report it to the SSA. To do that, file Form SS-5, Application for a Social Security Card. You can get the form on SSA.gov, by calling (800) 772-1213, or from your local SSA office.
2. Change tax withholding: A change in 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. Use the IRS Withholding Calculator tool on the IRS website to help you complete a new Form W-4. See Publication 505, Tax Withholding and Estimated Tax, for more information.
3. Changes in circumstances: If you receive advance payment of the Premium Tax Credit in 2014, it is important that you report changes in circumstances, such as changes in your income or family size, to your health insurance marketplace. You should also notify the marketplace when you move out of the area covered by your current marketplace plan. 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 will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.
4. Address change: Let the IRS know if your address changes. To do that, file Form 8822, Change of Address, with the IRS. You should also notify the US Postal Service. You can ask your local post office online to forward your mail. You may also report the change at your local post office.
5. Change in filing status: If you’re married as of December 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.
For same-sex married couples legally married in a state or country that recognizes same-sex marriages, you generally must file as married on your federal tax return. This is true even if you and your spouse later live in a state or country that does not recognize same-sex marriage. Visit the IRS website for more information.