Marriage status is essential for filing taxes; it determines filing requirements, standard deductions, and eligibility for certain credits and taxes. At the end of the year, the IRS generally considers whether you’re married, separated but not legally separated, or divorced. If you change your status, you may have to deal with multiple government agencies.
Changed Marital Status
You may want to review IRS Publication 504: Divorced or Separated Individuals, which guides selecting the correct filing status. If you changed your marital status this year, here are some points to consider:
- How and where to report a name change: Notify the Social Security Administration. The name on your tax return must match what’s on file at the SSA. If the name doesn’t match, return processing can be delayed. To update your information, go to the SSA’s website and search “Change Name with Social Security.” You can also have your name change processed by calling the SSA at 800-772-1213 or visiting a local SSA office.
- How to update your address: Notify the U.S. Postal Service, your employer, and the IRS of an address change. A key form is Form 8822, Change of Address (For Individual, Gift, Estate, or Generation-Skipping Transfer Tax Returns).
- Paycheck withholding: A change in marital status may also affect how much tax should be withheld from your paycheck. When calculating your withholding, you should use the IRS Tax Withholding Estimator to avoid a surprise at tax time. You should also speak with a tax professional to understand your new tax situation properly. You will likely have to fill out a new Form W-4, an Employee’s Withholding Certificate, to give to your employer.
Newlyweds: Consider your situation
If you are newly married, you should review your filing status. You can file your federal income taxes jointly or separately each year. It’s prudent to calculate both ways to determine which makes the most sense. Even if you were married on Dec. 31, the law says you’ve been married for the whole year for tax purposes.
Again, this can get complicated. Are you or your new spouse selling a home to move in together? Are stepchildren involved? Don’t wait for an unpleasant tax bill surprise; work today with a qualified professional.
If you have any questions about these topics or others, please contact one of our experts. At Vrakas CPAs + Advisors, we strive to take financial worry off business owners’ plates so they can concentrate on running their businesses, serving their customers, and staying ahead of their competition.