To most people, June is the beginning of wedding season, especially for those who became engaged during the holidays. Indeed, it is natural for soon-to-be married couples to stress out about the details of their special day, but after the wedding, reality and real life will set in. With that, newly married couples will have to consider how tax laws will affect their new life together.
While tax filing may be the last thing on their minds, there are several tax tips that newlyweds should be aware of before preparing their first return. This post will highlight a few.
Understand your new filing status – Married couples generally see better tax results when they file a joint tax return because the credits and exemptions are more generous for married couples. Further, the couple’s new status applies for the entire tax year regardless of whether the marriage takes place July 1 or December 31.
Make withholding adjustments if necessary – A couple’s new combined income could result in being in a higher tax bracket. Because of this, adjusting one’s withholding may be necessary. Changing it is pretty easy to do by completing a new W-4 for your employer.
Change your address – Many newlyweds change addresses as they move in together or buy new homes. Informing the IRS by filing form 8822 is fairly easy. While it may not matter as much now, identity theft is prevalent during tax season. So keeping the government informed could help curb illegal activity.
If you are a newly married couple and have additional tax questions, an experienced tax attorney can help.