Are You A New Bride?

Thursday, November 20, 2014

Planning for a wedding can prove to be quite the mind-boggling experience. There’s a lot to consider from choosing invitations, locating a venue, picking out flowers and cake designs, finding “the dress,” and figuring out which guests to sit where. The last thing a bride is going to want to contend with is what tax issues she needs to address after walking down the aisle. We all know, taxes are one thing we just can’t ignore … as much as we would like to. Getting married means major changes in every bride’s life. If you can address them right from the very beginning, you won’t have to deal with significant upsets later on.

Here are some basic issues you may not be aware of that will need attention.

What’s Your Name?

The number one culprit that holds up a tax refund from being issued is that the name does not match what’s on record from the prior year at the Social Security Administration. Should you decide to take the name of your spouse, or hyphenate your name with his, you must report it to the SSA. You can do so by calling 800-772-1213 or obtaining the Form SS-5 online at www.ssa.gov.

Your Tax Withholding Form

If you and your spouse both work, your combined incomes could possibly move you into a higher tax bracket PLUS, you need to change your status with your employer and file a new W-4 Form. The IRS provides a withholding calculator to help calculate your withholding tax at www.irs.gov.

Address Change

Who needs to be informed? Don’t forget to contact the postal service. They make it easy online at usps.com. Let’s not forget the IRS as well. Form 8822, change of address can be found by clicking here.

New Filing Status

You can file either jointly or separately each year. Figuring the status both ways, will help determine the lowest tax result suited for you. And, if you’re married as of Dec. 31, that’s your status for the whole year for tax purposes.

For those same-sex married couples, you file as married on your federal return for those states that recognize the union legally. It also holds true should you move later on to a state that does not recognize same-sex marriage. For more information, go to www.irs.gov. or call 800-829-3676.

Tax Credits to Consider

If you receive advance payment of the premium tax credit in 2014, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit provides financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.

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Jo Ann Koontz

[email protected] 941-225-2615