Marriage and taxes might not sound like a match made in heaven, but with all the planning and preparation that goes into a wedding, taxes might be worth adding to a wedding checklist.
You and your new spouse should be aware of these potential tax issues that come along with marriage.
Name change. The name and Social Security number on your tax return must match your Social Security Administration Card. If you change your name, report it to the administration. If you do not know how to do that, just file Form SS-5, Application for a Social Security Card, by either downloading the form from SSA.gov or by calling 800-772-1213. You can also visit a local SSA office for more assistance.
Change tax withholding. A change in your marital status means you must give your employer a new Form W-4, Employee's Withhold-ing Allowance Certificate. If you and your spouse work, your combined incomes may move you into a higher tax bracket or you may be affected by the Additional Medicare Tax.
Use the IRS Withholding Calculator tool at IRS.gov to help complete a new Form W-4. See IRS Publication 505, Tax Withholding and Estimated Tax for more information.
Changes in circumstances. If you or your spouse purchased a Health Insurance Marketplace plan and received advanced payments of the premium tax credit in 2016, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace when they happen.
Remember to notify the marketplace when you move out of the area covered by your current marketplace plan. Advance credit payments are paid directly to your insurance company on your behalf to lower the out-of-pocket costs you pay for your health insurance premiums. Reporting changes now will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance. This may affect your refund, balance due when you file your tax return.
Address change. Let the IRS know if your address changes. In the military, moving around is quite normal and usually the only change of address is done at the U.S. Postal Service. However, you should send IRS Form 8822, Change of Address, to protect your identity and keeping accurate contact information in case there is correspondence the IRS has for you.
Tax filing status. If you are married as of Dec. 31, that is your marital status for the entire year for tax purposes.
For example, in 2017 when you file your 2016 taxes, Married Filing Joint or Married Filing Separate will be your status. You could figure the tax both ways to find out which status results in the lowest tax.
Select the right tax form. Choosing the right income tax form can save money. Newly married taxpayers may find that they now have enough deductions to itemize on their tax returns. You must claim itemized deductions on IRS Form 1040 and not on Form 1040A or 1040EZ.
With changes in your circumstances or life events, like getting married, having a child or purchasing a new home can all be factors that can change the amount of taxes you owe. For more information, visit the IRS website, look for IRS podcasts or YouTube videos, or consult with a tax professional.
Assistance is available to service members, retirees and family members with a valid military ID card. Taxpayers should ensure they have all their information before filing a tax return, including a copy of their prior year's tax returns if possible.
For more information, call the Fort Sill Income Tax Assistance Center at 580-442-6445/8819.
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