A new marriage brings a great deal of change into your life. One thing that may change significantly is your tax return. The financial planning professionals at Boelman Shaw Capital Partners in Des Moines can answer your tax questions and help you file wisely. Below are some key considerations for your new tax picture:
Because the name and Social Security number on your tax return must match Social Security Administration records, be sure to register any name change with the SSA before filing your taxes. To do so, use form SS-5, which you can obtain athttp://www.socialsecurity.gov/online/ss-5.pdf, by calling 800-772-1213, or by visiting your local SSA office. In Des Moines, the SSA is located in Suite F of the Riverpoint Office Complex at 455 SW 5th Street. map
You probably well aware of the need to register a change of address with the post office, but you should also notify the IRS of any address change by filing form 8822. You can find the form and complete instructions here http://www.irs.gov/pub/irs-pdf/f8822.pdf. You should also make a special point of informing your employer of your new address to ensure that you receive your W-2 in January.
Pay attention to how your tax bracket changes with your new marital status and combined incomes. You may need to adjust your W-4 withholding. See the IRS worksheet at http://www.irs.gov/pub/irs-pdf/fw4.pdf to determine how many allowances you should claim.
Even if you have never qualified to itemize deductions before, the circumstances of your new marriage may cause you to qualify now. Look over Schedule A, Itemized Deductions to see what you may be able to claim, and get IRS tips on deciding whether to itemize at http://www.irs.gov/uac/Newsroom/Itemizing-vs-Standard-Deduction-Six-Facts-to-Help-You-Choose.
No matter how late in the calendar year you marry, you are married for tax purposes for the entire year. You will need to decide whether to file jointly or separately. In most cases, joint filing is beneficial, but not always. If you both earn relatively high incomes or if one of you has incurred significant medical expenses, for example, it may be less costly file separately. Calculate your taxes both jointly and separately to be certain which will result in the lower rate. The IRS offers guidance on choosing how to file in its Publication 501, Exemptions, Standard Deduction, and Filing Information.
A major change in tax law this year is that legally married same-sex couples are now treated as married for federal tax purposes. In Iowa, this has been true of state taxes since 2009. Same-sex couples who married before 2013 may choose to amend federal returns for tax years as early as 2010 to reflect the now-recognized married status. For more information, see the IRS news release announcing the change.
Are you getting married or a newlywed? Give us a call at 515-225-1185 and we can help you with your tax questions as you move forward with your marriage!
Material discussed herewith is meant for general illustration and/or informational purposes only, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.