Here are three tax tasks for newly married couples
Weddings are a wonderful milestone that can also affect your taxes.
In some cases, like your filing status, this could mean tax savings. So after the "I do's," cake-cutting, and honeymoon, make sure to sit down and tackle these three tax tasks together.
Remember: if you marry by December 31, you're considered married for the whole year for tax purposes.
Here's what to know.
Personal info changes
If you plan to change your name after your marriage, make sure to report that to the Social Security Administration. That's because the name on your tax return must match what the SSA has on file for you. If. the names don't match, any tax refund owed to you could be delayed.
To officially change your name, file Form SS-5, Application for a Social Security Card. You can find it on SSA.gov, by calling 800-772-1213, or at a local SSA office.
If you're changing where you live after your wedding, let the Internal Revenue Service (IRS) and U.S. Postal Service (USPS) know.
You can send the IRS Form 8822 to report a change of address. You should also notify the postal service to forward your mail by changing your address online at USPS.com or at your local post office.
You should consider changing how much federal taxes are withheld from each of your paychecks after getting married. If you're newly married, you must give your employer a new Form W-4 that you use to adjust your withholdings within 10 days.
If both you and your spouse work, you may fall into a higher tax bracket and/or must pay the additional Medicare tax.
To find out how much you should withhold in taxes, use the Tax Withholding Estimator on IRS.gov to help complete Form W-4. The tool also allows you to adjust your withholdings, so you get a certain tax refund next year. For more information, review Publication 505 on tax withholding and estimated tax.
After you're married, you can file your taxes either jointly or separately each year. Typically, filing jointly is more advantageous for the following reasons:
In 2021, you only receive a standard deduction of $12,550 if you file separately, while you get $24,800 if you file jointly.
You are disqualified from several tax deductions and credits if you file separately.
Other deductions, like the IRA contribution deduction and the capital loss deduction, are more limited for separate filers.
In some rare instances, it may be better to file separately, such as when you have a large amount of medical expenses. By filing separately, it may be easier to reach the threshold that allows you to deduct those expenses.
Janna is an editor for Yahoo Money and Cashay, a new personal finance website. Follow her on Twitter @JannaHerron.
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