Q: My fiancé and I are getting married in a couple of months. What do we need to do, tax-wise?
A: First of all, congratulations on your upcoming marriage. Secondly, while it may not be as high on the wedding plan checklist as the venue, invitations and attire, there are important tax issues created by a marriage that warrant some prompt attention following the wedding.
Here are the key changes that will need to be made:
Name change. Anytime names are changed, it should be reported to the Social Security Administration (SSA). The name associated with an individual’s Social Security Number (SSN) should match the name on the tax return. To change a name with the SSA, file Form SS-5, “Application for a Social Security Card.” The form is available from www.ssa.gov, by calling (800) 772-1213, or from the local SSA office.
Address change. Let the IRS know about an address change by filing Form 8822, “Change of Address.” Also notify the U.S. Postal Service at www.usps.com to forward mail. You may also report the change at your local post office.
Change tax withholding. A change in marital status requires that a new Form W-4, “Employee’s Withholding Allowance Certificate,” be furnished to the employer(s). Combined incomes may move the taxpayers into a higher tax bracket. Search www.irs.gov for the IRS Withholding Calculator tool for help completing the new Form W-4.
Change in filing status. Marital status is determined as of December 31 each year. Spouses can choose to file jointly or separately each year. We can help you make that determination by calculating your tax liability both ways.
Change in circumstances. Taxpayers receiving an advance payment of the health care premium tax credit in 2014 should report changes in circumstances, such as a change in income or family size, to the Health Insurance Marketplace. Also, the Marketplace should be notified when you move out of the area covered by your current Marketplace to ensure you get the proper type and amount of financial assistance.
For more information on this topic or many other tax, business and investment topics, contact your CPA, Business Advisor, or Shannon VonEye, CPA at svoneye@vlcpa.com.
About VonLehman
Founded in 1946 and with offices in Kentucky, Ohio and Indiana, VonLehman is a leading, regional, full-service CPA, business advisory and business turnaround firm. VonLehman provides forward-thinking accounting, tax and strategic business advice to closely-held businesses, not-for-profits, governmental entities and individuals throughout the Kentucky, Ohio and Indiana region. Specializing in sectors that drive the economy – including manufacturing and distribution; construction and real estate development; professional services and healthcare, VonLehman provides clients with the depth of services and resources expected from larger national firms, but with an unmatched measure of personal care and attention. See http://www.vlcpa.com for more information.
Shannon VonEye joined VonLehman & Company in 2013 and is currently a Manager for the firm. She graduated magna cum laude from the University of Kentucky with a Bachelor of Accounting. She specializes in tax services for closely-held businesses, individuals, and not for profit organizations.