With August being in the middle of wedding season, it is natural to think about what would be best for wedding gifts. Indeed, retailers have elaborate and detailed registries to choose from. But in the midst of all the gifts, the new couple must learn to develop a life together. For those who have lived together previously, the adjustment may not be so drastic. Nevertheless, there are several tax tips that couples should be aware of that could make their first joint return easier.
This post will highlight a few.
Be aware of your new filing status – Generally speaking, married couples enjoy better tax results when they file a joint tax return. This is because the credits and exemptions are generally higher for married couples compared to single filers. Also keep in mind that your new status applies for the entire tax year regardless of whether you tie the knot on January 1 or December 31.
Check on your withholding – Keep in mind that your new combined income could push you into a higher tax bracket, especially when you consider commissions that may be higher for a particular year or quarter. Adjusting your withholding is easy to do; simply complete a new W-4 so that your employer will know how much to take out.
Change your address – For those new spouses who are relocating, letting the IRS know by filing Form 8822 is essential. The IRS is taking increased measures to curb identity theft, and letting Uncle Sam know that you now live at a different address (and have a different surname) can help avoid future confusion.
If you are a newlywed and have additional tax questions, an experienced attorney can help.