Marriage and Tax implication

Getting married? You’ve already considered how it will affect your taxes, right?! No? Of course we know that having a tax conversation isn’t on the top of most people’s list when planning a union. We understand, but there are things that the IRS wants you to know that could affect you once you are married.

Name Change

If one of you changes your name, you will need to report it to the Social Security Administration (SSA). This is an important step because your name on file with the SSA must match what you ultimately use when filing your tax return. If it doesn’t, it could prevent e-filing and cause delays of any tax refund.

Information can be updated by completing and filing Form SS-5 (Application for a Social Security Card), visiting your local SSA office, or by calling 800-772-1213.

Address Change

Not all couples move, but if you do (or one of you does), you will need to change your address with both the IRS using Form 8822 (Change of Address) and your local Post Office, or USPS.com.

Employer Tax Withholding

Depending on how you plan on handling your finances together, you may want to change your tax withholding with your employer(s). For example, combining incomes may move you into a higher tax bracket. You can use the Tax Withholding Estimator on IRS.gov to help you determine the right amount.

A couple will have 10 days from the time they are married to give their employers a new Form W-4 (Employee’s Withholding Allowance) if they wish to make a change.

For more information you can read Publication 505 (Tax Withholding and Estimated Tax).

Tax Filing Status

Will you be filing your taxes jointly or separately each year? It might be worth doing your taxes both ways to determine which would be most beneficial to you and your partner. The IRS considers you married the whole year even if you are wed anytime between January 1 and December 31 of any year.

For more information, please contact us at 401-831-0200. If you would like assistance reviewing your tax options when the time comes, we would be glad to be of service.

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