Year-End Tax Tasks For Newlyweds

Raul Garcia, CPA | Forbes | December 6, 2012

If you got married this year, congratulations! This exciting time in your life can bring lots of changes, such as moving into a new apartment or buying a house, combining finances and joining families. As we approach the end of 2012 and look ahead to tax season next year, there are some other changes that you and your new spouse need to keep in mind to make sure the IRS doesn’t ruin your marital bliss.

One of my CPA colleagues here at Kaufman Rossin, Jeffrey Ardizon, a tax supervisor, recently tied the knot and has some insightful tax advice for fellow newlyweds. Follow these three tips, he says, and you’ll both be ready when it’s time to file:

  1. First Things First
    It’s never too early to start getting things in order. As soon as you return from your honeymoon, notify the appropriate offices of any name change or new address. This includes the U.S. Social Security Administration, U.S. Postal Service, state Department of Motor Vehicles, your employer, and of course the Internal Revenue Service. “Don’t let your tax refund go missing,” Ardizon warns. “Tell the post office when you move, so it can forward any correspondence from the IRS to your new address.”
  2. Check Your Withholding
    Here’s an unpleasant surprise: If both spouses are employed, your combined income could lift you into a higher tax bracket. You may need to complete a new Form W-4, Employee’s Withholding Allowance Certificate, for your employer to adjust the amount withheld from your pay. A useful tool on the IRS website can help you calculate your withholding based on your new filing status. The IRS Withholding calculator provides the information you need to avoid having too much (or too little) federal income tax withheld from your pay.
  3. Choose Filing Status Wisely
    Your marital status on December 31st determines whether the IRS considers you to be married for that year. Most married couples can choose to file their federal income tax return jointly or separately for the year. To determine which filing status will save you the most money, you can calculate the tax both ways and choose the better option. “For most couples, filing jointly is more beneficial,” Ardizon says.

Read about newlywed tax tips at forbes.com.

Read about newlywed tax tips at VOXXI.com.

Raul Garcia, CPA, is a Entrepreneurial Services Principal at Kaufman Rossin, one of the Top 100 CPA and advisory firms in the U.S.