Newly Wed couples face so many changes in their lives. They start a new home, they adjust to the new routine, decide upon sharing bills and other payments, match their job timings, along with that another major change that they face is in their tax status. There are some consequences related to Tax which the newlywed couple must understand. Here are some basic considerations related to Tax for the newly Weds:
Change of Name and home address
Most of the women change their names after getting married. Mostly the newlywed shift to a new apartment as well.
The law states that the address and name on your income tax return should match the social security number and the records at the Social Security Administration (SSA).
Following is the process of determining the change:
- If you change your name when you get married, you must report it to the SSA. You can report the change by filingForm SS-5 (Application for a Social Security Card).
- If your address changes you need to do the following;
- Notify the IRS by filing Form 8822, the form name is Change of Address
- Inform the U.S. Postal Service of the change, which can be done by visiting your local post office or by visiting the USPS website to request mail forwarding.
Change in the Withholding Tax records
Once your marital status changes, you need to provide your employer with a W-4 form known as Employee’s Withholding Allowance Certificate. There will be different considerations if both the partners are employed or if one is employed.
Changes in Filing Status
There are five different filing statuses:
- Married filing jointly
- Married filing separately
- Head of household
- Qualifying widow(er) with dependent child
If you find that more than one filing status applies to you, you can use whichever one offers you the most tax benefits. For Federal tax purposes, if you are married at any point during a given year, you are considered ‘married’ for the entire tax year.