Planning a wedding over the
holidays? Plan for taxes too
Will
wedding bells be ringing for you along with holiday sleigh bells this year? If
so, add tax planning to your to-do list. Here are tax tips for soon-to-be
newlyweds.
Check the effect marriage will have on your
tax bill. If you both work and earn about the same income, you may need to
adjust your tax withholding to avoid an unexpected tax bill next April, as well
as potential penalty and interest charges for underpayment of taxes.
Notify your employer. Both you and your
spouse will need to file new Forms W-4, Employee's
Withholding Allowance Certificate, with your employers to reflect your
married status.
Notify the IRS. You can use Form 8822, Change of Address, to update your
mailing address if you move to a new home.
Notify the insurance marketplace. If
you receive advance payments of the health insurance premium tax credit,
marriage may change the amount you can claim.
Update your social security information.
You'll need a certified copy of your marriage certificate to accompany Form
SS-5, Application for a Social Security
Card, if you change your name. Otherwise the IRS won't be able to
cross-match your new name and your social security number when you file your
return with your spouse.
Review your financial paperwork. Update your estate plan, making
appropriate changes to wills, powers-of-attorney, and health care directives.
Also review the beneficiary designations on your retirement plans and insurance
policies.
Have questions? Contact us.
We'll help you get the financial part of your married life off to a great
start.
