When you get married, your life changes in a lot of ways. Many of those changes have financial and tax effects. As a result, it’s important to be aware of the steps you should take quickly to avoid later administrative issues. Here are a few tips:
1) If you change your name after marriage, you should notify the Social Security Administration (SSA) as soon as possible. If the name you use on your tax return does not match your name in SSA records, your return will be rejected by the IRS, which will in turn delay your refund or cause your payment to be misapplied.
In order to change your name with the SSA, you’ll need to file Form SS-5, Application for a Social Security Card. More information on the application and the information needed for it can be found here. You can also have the form mailed to you by calling the SSA at 800-772-1213, or you can pick the form up at your local SSA office.
2) If you change your address after marriage, you should promptly notify the IRS and the US Postal Service of the change. Prompt notification will help prevent any mail, including time-sensitive IRS notices, from getting lost or misdelivered.
3) After you get married, your tax filing status will change. Beginning with the year of your marriage, you can no longer file a return as “single” – you have two other options:
a) You can file a “married filing jointly” return together with your spouse, or
b) you and your spouse can file individual “married filing separately” returns.
Although these return(s) will not be filed until the year after your marriage, you should discuss your filing plans with your spouse before the return is due if at all possible. Your choice can substantially affect a variety of tax-related items before the return is due, such as the fact that…
4) After you get married, the IRS and your home state will tax your income at different rates. This change takes place in the year of your marriage, and it applies to your income over the entire year, regardless of when you get married. These changes apply whether or not you will file a joint return with your new spouse or separate returns (see #3).
In order to have your federal taxes withheld properly after marriage, fill out a new Form W-4 and give it to your employer. Depending on what filing status you and your spouse decided to use (see #3), you may need your spouse’s income information to properly fill out your new W-4. The IRS Withholding Calculator may also be helpful in filling out the W-4.
Each state that has an income tax has a form similar to the W-4. For example, in order to have your Georgia taxes withheld properly after marriage, you can fill out a new Form G-4 and give it to your employer.
5) If you purchase your health insurance from a state or federal Marketplace and you are receiving advance payments of the premium tax credit, you should report your marriage, your family size change, and your income change to the Marketplace as changes in circumstances. This reporting will allow the Marketplace to adjust your advance credit for the changes, which will in turn help prevent you from owing unexpected amounts due with your federal tax return.
These are only a few of the most significant financial and tax effects of marriage. If you have questions about the financial or tax effects of your specific marriage or marriage situation, you should contact an Atlanta tax accountant.
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided in this website is not all inclusive and such information should not be relied upon as being all inclusive.