Taxpayers should include tax plans in their wedding plans
Couples getting married this year know there are a lot of details in planning a wedding. Along with the cake and gift registry, their first tax return as a married couple should be on their checklist. The IRS has tips and tools to help newlyweds consider how marriage may affect their taxes.
Here are five simple steps that can make filing their first tax return as newlyweds less stressful.
Step 2: Marriage may mean a change in name. If either – or both – of the newlyweds legally change their name, it’s important toreport that change to the Social Security Administration. The names on the taxpayers’ tax return must match the names on file at the SSA. If it doesn’t, it could delay any refund.
Step 3: If a marriage means a change in address, the IRS and the U.S. Postal Service need to know. Newlyweds can fileForm 8822, Change of Address, to update their mailing address with the IRS. They should notify the postal service to forward their mail by going online atUSPS.com or by visiting their local post office.
Step 4: Taxpayers who receive advance payments of thepremium tax credit should reportchanges in circumstances to their Health Insurance Marketplace as they happen. Certain changes to household, income or family size may affect the amount of the premium tax credit. This can affect a tax refund or the amount of tax owed. Taxpayers should also notify the Marketplace when they move out of the area covered by their current Marketplace plan.
Step 5: Newlyweds should consider theirfiling status. A taxpayer’s marital status on December 31 determines whether they’re considered married for that full year. Generally, the tax law allows married couples to file their federal income tax return either jointly or separately in any given year. Taxpayers can use theInteractive Tax Assistant to determine which status is best for them.