It may not be high on the list of wedding planning activities,
but there are a few simple steps that can help keep tax issues
from interrupting your newly wedded bliss. If you recently
married, check out your new tax situation. You might save money
or even prevent the problem of a missing refund check.
The first things to handle are changes of name and address.
Later, as tax season approaches, consider whether or not you'll
itemize deductions, which tax return form is right for you and
what filing status you'll use.
No one should delay the cake cutting or honeymoon because of
taxes. But here are some helpful hints for later: Use Your
Correct Name
You must provide correct names and identification numbers to
claim personal exemptions on your tax return. If you changed
your name upon marrying, let the Social Security Administration
know and update your Social Security card so the number matches
your new name. Use Form SS-5, Application for a Social Security
Card.
Change of Address
If you or your spouse has a new address, notify the U.S. Postal
Service so that it will be able to forward any tax refunds or
IRS correspondence. The Postal Service will also pass your new
address on to IRS for updating. You may also notify to notify
the IRS directly by filing Form 8822.
Refund Checks
Each year, the Postal Service returns thousands of tax refund
checks as undeliverable, usually because the addressee has
moved. Notifying both the Postal Service and the IRS of an
address change in a timely manner can help ensure the proper
delivery of any refund checks. To check the status of a tax
refund, go to the IRS web site and use the "Where?s My Refund?"
service.
Changing Filing Status
Your marital status on December 31 determines whether you are
considered married for that year. Married persons may file their
federal income tax return either jointly or separately in any
given year. Choosing the right filing status may save you money.
A joint return (Married Filing Jointly) allows spouses to
combine their income and to deduct combined deductions and
expenses on a single tax return. Both spouses must sign the
return and both are held responsible for the contents.
With separate returns (Married Filing Separately), each spouse
signs, files and is responsible for his or her own tax return.
Each is taxed on his or her own income, and can take only his or
her individual deductions and credits. If one spouse itemizes
deductions, the other must also.
Which filing status should you select? It depends entirely on
your specific situation. You should consider sitting down with a
tax professional to make a determination.
About the author:
Richard Chapo is CEO of Business Tax
Recovery - Obtaining tax refunds for small
businesses for overpaid taxes. Discovery tax strategies and
deductions in our tax articles
section.
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