Tax tips for newlyweds
If you recently tied the knot, here are three tips to surviving your first tax return as Newlyweds.
CNNMoney.com - The first test for newlyweds is often not where to store the china, but rather facing Uncle Sam as husband and wife. Newly married couples, those who tied the knot between Jan. 1 and Dec. 31 2005, may still be "caught up in the whole wedding mania," according to Diane Forden editor-in-chief of Bridal Guide's magazine, but the tax man isn't going to wait for the honeymoon to end. Fortunately, these three "tax-wise tips" tips from Bridal Guide will help ensure your first, problem-free tax day as Mr. and Mrs. What's in a name? If you're changing your surname, be sure to do so on your Social Security card (go to www.socialsecurity.gov to get Form SS-5). If the Social Security Administration doesn't have documentation of your name change you will run into a lot of red tape which could delay any tax refund you're entitled to. Think like a couple. Filing your taxes jointly, once you're married, will usually allow you to take additional deductions which means you will pay less than if you file separately. You can still file jointly without changing your name with the Social Security Administration. However, you do need to show your maiden name on the tax return instead of your married name. Sometimes it's ok to say you're still single. In some cases, it may make sense to maintain your single status when you decide how much withholding to take on your W-4. (You must file "married," but can choose to withhold at the single rate in order to lose less money in taxes over the course of the year.) You can keep a single status and still file jointly, which may make sense until you really know what your financial status will be as a married couple. This may also be the way to go when one person earns significantly more than the other. For a withholding calculator, go to www.irs.gov, or ask your tax advisor. Forden also suggests going over the tax forms together, so one party is not in the dark, "it's really important to be aware of where you are financially as a couple." For richer or poorer, after all. ------------------ Click here for a newlywed money makeover. For common tax goofs...and how to avoid them, click here. |
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