When you get married, or if getting married is on your mind, the last thing you may be thinking about is taxes. After all, you are starting a new life with your loved one and do not want to think about complex things. Unfortunately, once the wedding reception ends, you will be hit with reality and its challenges, one of which is taxes.
Once your honeymoon is over, it is time you start thinking about your finances as a couple. If you get married on 31 December, you are married for the whole tax year. You should keep a few things in mind to ensure a smooth transition from single to married life. For assistance, consult with a Troy tax accounting firm.
Tax-saving tips for newly married couples
- Change your name with the Social Security Administration.
Changing your name with the Social Security Administration is step one and one of the most important. This is especially important if you have changed your name after the marriage. You want your name in the SSA to match the name on your tax return. Not only with the SSA, but if you have changed your name, you should update all of the proper agencies.
If you did not change your name after the marriage, you do not need to do this step.
- Check your tax withholding.
Since you are now married and have a new tax status, you want to review your tax withholding. Check whether your new marital status makes you eligible for tax deductions or if your combined income with your spouse increases the amount of taxes you need to pay. Since this is a complex area, you should consult a tax expert to review your withholding allowances.
- Save your receipts.
Weddings in Troy, even the private and small ones, can be expensive. But, with the right choices, you may be able to deduct some costs from your taxes. Payments for nonprofit venues like the church can be considered charitable donations. Other ways to deduct tax costs include donating your wedding dress, flowers, and leftover food after your wedding.
- Make money-saving moves together.
There are a few money-saving moves that you can make together as a couple to boost your tax refund, such as donating your clothes to the needy. Moving in together may have maxed out your closet space, so donating some clothes will give you both the space and tax deduction.