Before the memo begins, please read this important message.
President Elect Trump is planning a major Tax Overhaul in 2017!
Now is the time for YOU to plan, NOT after the first of the year.
If your accountant isn’t pursuing you to plan for these tax changes, it may be time to hire a new one.
Now back to our normally scheduled memo on Newlywed Tax Tips.
Looking for a gift to give for all those June weddings? How about some solid tax advice for the newlyweds?
Taxes may not be top-of-mind for most new couples, but there are some important tax issues they should be aware of, so the I put together the following set of tips.
- A marriage is the most significant time to schedule a tax planning consultation. Please call me to schedule one, 732-673-0510.
- New names? Whether one of the spouses takes the other’s name or not, the names and Social Securities on their tax return must match their Social Security Administration records – so if any names are changed, they’ll need to report it to the SSA with Form SS-5, Application for a Social Security Card. The form is available on www.ssa.gov, or by calling (800) 772-1213.
- Congratulations – you’re in a new bracket! The spouses’ new marital status needs to be reported to their employers on a new Form W-4, Employee’s Withholding Allowance Certificate. And the IRS was quick to point out that the new couple’s combined income may move them into a higher tax bracket. If you are married and BOTH working, your W4 status should be Single, but withhold at the higher single rate, and NOT Married.
- Yes, there’s an Obamacare angle. If either spouse bought a Health Insurance Marketplace plan got an Advanced Premium Tax Credit this year, they need to report any changes in circumstance, like income or family size. They should also alert their Marketplace is they moved out of its area.
- Crossing the threshold. If either of the newlyweds is moving, they’ll want to let the IRS know, with Form 8822, Change of Address. (They should probably also let the Post Office know, too.) Don’t make them come looking.
- Married? Filing jointly? If the couple is married as of December 31, that’s their marital status for the whole year for tax purposes – and that means they need to decide whether to file jointly or separately. Which one is better depends on the couple’s individual circumstances, so they’ll want to check out both possibilities.
- New forms. Combined financial lives may mean a higher tax bracket, but they can also mean more benefits from itemizing – which would mean claiming those deductions on a Form 1040, as opposed to a 1040A or 1040EZ. This would be a good area for a friendly tax advisor to offer some advice …
- More Resources. My firm offers a full array of tax planning resources for your new family.
If you don’t have a family CPA, or are unhappy with your current representation, this is the time to start a new professional relationship with my firm.
Click here to ask me any question you may have.
Please reach out to me without hesitation with any tax, business or accounting question, and to schedule a consultation.
Tax Laws are complex.
It is very easy to make mistakes that can incur penalties.
Do you have a Tax, Accounting or Business Question?
Call Me Immediately. (732) 673-0510.
Is your CPA or Attorney
ignoring your Phone Calls and Emails?
Call Me Immediately. (732) 673-0510.
Remember,
“If We Aren’t Working For You, Then You Aren’t Working At Your Best”
Chris Whalen, CPA
(732) 673-0510
79 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com
