Do you just say “I do” to the love of your life, and you’re ready to embark on a new adventure together? That’s amazing! But before you pack your bags for your honeymoon, there’s one more thing you need to do: file your taxes. Yes, taxes. They may not be the most romantic topic, but they are an important part of your financial future as a married couple. However, if you’re not careful, you could end up paying more than you need to or missing out on some valuable tax benefits.
Don’t panic. Use this guide to help you navigate the tax implications of your marriage and give you some tips on how to save money and avoid headaches — whether you’re filing jointly or separately, whether you both work or one of you stays at home, whether you have kids or not.
So, don’t let taxes ruin your newlywed bliss. Follow these tips to be able to enjoy your marriage and your money. After all, you vow to share your life with your partner, and that includes your taxes. Continue reading to the end.
1. Decide How You Want to File Your Taxes
2. Update Your Personal Information with the Authorities
3. Adjust Your Tax Withholding from Your Paycheck
4. Maximize Your Tax Deductions And Credits
5. Organize Your Tax Documents And Receipts
6. Choose a Tax Software Or a Tax Professional
7. File Your Taxes Early
8. Review Your Tax Return Carefully
9. Pay Your Taxes Or Claim Your Refund
1. Decide How You Want to File Your Taxes
Beware that filing jointly or separately can have a significant impact on your tax liability and refund. Filing jointly means that you combine your income and deductions on one tax return, and pay taxes as a single unit.
Filing separately means that you report your income and deductions on separate tax returns, and pay taxes as two individuals. Filing jointly usually gives you more benefits, such as a larger standard deduction, higher income limits for certain credits, and lower tax rates. However, filing separately may be better in some situations, such as if one of you has a lot of deductions, such as medical expenses or student loan interest, or if one of you owes certain debts, such as child support or back taxes.
Filing separately may also protect you from being liable for your spouse’s tax errors or fraud. To decide which filing status works best for you, you can use the IRS Withholding Estimator, which is an online tool that helps you calculate your tax liability and refund based on your income, deductions, and filing status. You can also consult a tax professional for more guidance.
2. Update Your Personal Information with the Authorities
Do you change your name or address after getting married? If yes, you need to let the Social Security Administration (SSA) and the IRS know. To change your name, fill out Form SS-5 and send it to the SSA. To change your address, fill out Form 8822 and send it to the IRS. Also, inform the postal service to forward your mail to your new address.
3. Adjust Your Tax Withholding from Your Paycheck
Know that you may need to change the amount of tax that your employer takes out of your paycheck, depending on your combined income and deductions. If you both work, you may move into a higher tax bracket or be subject to the Additional Medicare Tax. If one of you stays at home, you may qualify for a spousal IRA.
To update your withholding, fill out Form W-4 and give it to your employer. Form W-4 has a worksheet that helps you determine how many allowances you should claim, based on your filing status, income, deductions, and credits. You can also use the IRS Withholding Estimator to help you fill out Form W-4. Update your Form W-4 whenever you have a major life change, such as getting married, having a child, or changing jobs.
4. Maximize Your Tax Deductions And Credits
Are you aware that as a married couple, you may be eligible for more tax breaks? Yes, such as a larger standard deduction, higher income limits for certain credits, and greater tax-free profit from selling your home. You can also choose the best benefits from both of your employer-sponsored plans, such as health insurance, retirement savings, and flexible spending accounts. You must also consider making charitable donations, paying for education expenses, and deducting medical costs, if applicable.
5. Organize Your Tax Documents And Receipts
To make your tax filing easier and faster, keep track of all your tax-related documents and receipts throughout the year. You can use a folder, a binder, or a digital app to store your documents, such as W-2s, 1099s, mortgage statements, bank statements, medical bills, donation receipts, etc. Also, keep copies of your previous tax returns for reference.
6. Choose a Tax Software Or a Tax Professional
Depending on your tax situation and your preference, you can choose to use tax software or a tax professional to help you file your taxes. Tax software can guide you through the process and check for errors and deductions. A tax professional can offer you personalized advice and representation in case of an audit. You can compare the features and costs of different tax software and tax professionals online.
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7. File Your Taxes Early
Ensure you file your tax early to access many benefits, such as avoiding penalties, getting your refund faster, and preventing identity theft. You can file your taxes as soon as you have all your documents and information ready. The deadline for filing your taxes is usually April 15, unless it falls on a weekend or a holiday. You can also request an extension if you need more time, but you still have to pay any taxes you owe by the deadline.
8. Review Your Tax Return Carefully
Before you submit your tax return, review it carefully and make sure everything is correct and complete. Check your personal information, your filing status, your income, your deductions, your credits, your payments, and your refund or balance due. Also, sign and date your tax return, and keep a copy for your records.
9. Pay Your Taxes Or Claim Your Refund
If you owe any taxes, pay them by the deadline to avoid penalties and interest. You can pay your taxes online, by phone, by mail, or in person. You can also set up a payment plan or an offer in compromise if you can’t pay your taxes in full. If you are entitled to a refund, you must claim it as soon as possible. You can check the status of your refund online or by phone.
Recap
Congratulations, you have successfully filed your taxes as a newly married couple! You need to celebrate your achievements and reward yourself for your hard work. You can treat yourself to a nice dinner, a movie, a spa, or a vacation. You can also use your refund to pay off some debts, save for the future, or invest in something you love. You deserve it!
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