Here are seven tips for newlyweds.
1. Notify the Social Security Administration
You should report any name change to the Social Security Administration so your name and Social Security number will match when you file your next tax return. File a Form SS-5, Application for a Social Security Card, at your local SSA office.
2. Notify the IRS about your new address change
If you have a new address you should notify the IRS by sending Form 8822, Change of Address.
3. Notify the U.S. Postal Service
You should also notify the U.S. Postal Service when you move so it can forward any IRS correspondence or refunds.
4. Notify your employer
Report any name and address changes to your employer(s) to make sure you receive your Form W-2, Wage and Tax Statement, after the end of the year.
5. Check your withholding
If both you and your spouse work, your combined income may place you in a higher tax bracket. You will need to be assisted in determining the correct amount of withholding needed for your new filing status. After that is determined, you will have the information you need to complete a new Form W-4, Employee's Withholding Allowance Certificate. You can fill it out and print it online and then give the form to your employer so they withhold the correct amount from your pay.
6. Select the right tax form
Choosing the right individual income tax form can help save money. Newly married taxpayers may find that they now have enough deductions to itemize on their tax returns. Itemized deductions must be claimed on a Form 1040, not a 1040A or 1040EZ.
7. Choose the best filing status
A person’s marital status on Dec. 31 determines whether the person is considered married for that year. Generally, the tax law allows married couples to choose to file their federal income tax return either jointly or separately in any given year. Figuring the tax both ways can determine which filing status will result in the lowest tax, but usually filing jointly is more beneficial.
As a newly married couple or even a married couple who has never thought about the long-term consequences of not having a solid asset protection plan, now is better than ever to get started. You don’t need to be rich and famous to create such a plan to protect your significant other and assets. It is imperative, however, to have proper legal counseling to make sure you protect your legal rights and prevent legal hindrances in the future to protect yourself and family when it comes to matters such as an unforeseen illness, accident, death or divorce.
At Arora Law Firm, our goal is to provide each of our clients with as much information as possible about Asset Protection. We do not provide tax advice but rather can guide you through the legal hurdles of tax law.
Some of our asset protection services include but are not limited to:
- Establishing a Healthcare Surrogate
- Power of Attorney
- Revocable Trusts
- Family Limited Partnerships
Copyright 2011 by Arora Law Firm. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without prior written consent of Arora Law Firm