Five Tax Tips For The Newly Married
If you have just got married, or you plan to get married soon, you should learn how to deal with your tax changes. Getting married is a wonderful and life-changing decision for one, especially in terms of financial status. If you want to stay away from problems that may arise from your marriage, follow these five tax tips for newly married couples:
Time Your Marriage to Minimize Taxes
Few people know that they could save their tax dollars by timing their marriage. If both of you are employed and have equal income, it is better to get married in January than in December of the year. However, if one person earns significantly higher than the other, you may consider getting married in December to pay less on tax.
File Joint Income Tax Returns
If you file your income tax returns together, you may be eligible for a lot of deductions and credits. You only file your income tax returns separately if you intend to keep your income separately to support your child support or alimony claims.
Notify the Social Security Administration If You Have Changed Your Name
If you are a woman and need to change name after a marriage, report your name change to the Social Security Administration office as soon as possible. You need to report your name change to avoid any matching problems that may arise when you file your tax return later on.
Check Your Withholding
If both of you are working, your combined income may put you in a higher tax bracket. To avoid that, you should use the IRS Withholding Calculator to calculate the correct withholding amount for your new tax status.
Notify the U.S. Postal Service and Your Employer As Well
If you have moved, you need to notify the U.S. Postal Service so that it could forward you any IRS correspondence or refunds. You also need to inform your employer about your name change or address change so as to make sure you will receive the correct tax statement and form W-2 at the end of the year.
Vo Thi Quynh Yen has been writing freelance for over 3 years. She is passionate about business and finance and would like to become an entrepreneur in the future. She specializes in SEO, link building and is also a keen Internet marketer. To know more about tax relief and information related to it, Visit the site.