Getting Married? Tax Planning Tips to Consider Before the Big Day :: Wamhoff Financial & Accounting


Getting Married? Tax Planning Tips to Consider Before the Big Day

Wedding season is in full swing, and while many couples are paying close attention to things like dresses, food, and guest lists, it’s important to remember that some financial and tax planning should also be on the radar screen. Sandy Furuya, Senior Accounting Manager at Wamhoff Financial Planning and Accounting Services, shares IRS tips to help brides and grooms get through their transition to married life.

  • Change of Name and Your Tax Returns
    • All names and Social Security numbers on your tax return must match your Social Security Administration records.
    • That means if you’re planning to change your name, you must report it immediately to the SSA.
    • Name change forms are available for download at SSA.gov. Search for Form SS-5, Application for a Social Security Card. You may also call 800-772-1213 or visit a local SSA office.
  • Change Tax Withholding
    • The withholding rate for married people is lower than it is for singles, so consider changing your income tax withholding – and do it sooner rater than later.
    • Before doing so, assess your tax situation or contact a tax professional as we often find that some married people are not withholding enough, especially if both spouses work.
    • To change your withholding, you will need to prepare a new Federal and State W-4 to submit to your employer.
  • Change in Circumstance – Health Insurance Marketplace
    • If you receive advance payments of the premium tax credit, you should report a change in circumstance to the Health Insurance Marketplace. This also applies to changes in your income or family size.
    • The advance premium tax credit provides financial assistance to help you pay for insurance through the Marketplace, so reporting your changes will adjust the credit.
    • Failure to do so could mean that you’ll be faced with owing money on your tax return.
  • Change of Address
    • If you move, you should report your new address to all government entities through IRS Form 8822. Each state also has a similar form.
    • The U.S. Postal Service change of address can be completed online at USPS.com.
  • Change of Filing Status
    • Review your situation and decide, with your spouse, if you will file “Married Filing Jointly” or “Married Filing Separately.”
    • Typically “Married Filing Jointly” provides the best tax savings, but you should calculate your specific situation under both methods.
    • Even if you don’t marry until December 31st, you are considered married for the entire year for tax purposes!