Tax tips for newlyweds

| 29 Sep 2011 | 09:03

    With the summer wedding season in full swing, the IRS advises the soon-to-be married and the just-married to review their changing tax status and update any name and address changes. Here are a few simple steps when the honeymoon’s over and you get your feet back on the ground: •Report any name and address changes timely to the Social Security Administration, the Internal Revenue Service, the U.S. Postal Service and your employer, to be sure to receive any tax refund or IRS correspondence, and so your name and social security number will match when you file your next tax return. •Consider whether you’ll file joint or separate tax returns and choose the best filing status. A person’s marital status on Dec. 31 determines whether the person is considered married for that year. A joint return allows spouses to combine their income and to deduct combined deductions and expenses on a single tax return. Both spouses must sign the return and both are held responsible for the contents. With separate returns, each spouse signs, files and is responsible for his or her own tax return. Each is taxed on his or her own income, and can take only his or her individual deductions and credits. If one spouse itemizes deductions, the other must also. •Select the right 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. Deductions for money paid for medical care, mortgage interest, real estate taxes, state and local income taxes, charitable contributions, casualty losses and certain miscellaneous costs can reduce federal taxes. •Check your withholding. Wage earners can adjust the amount withheld by giving the employer a new Form W-4. This form asks for marital status, withholding allowances and any additional amount that needs to be withheld. •If you’re buying a home, find out which expenses may be deductible and which are not. On-line help is available at the IRS Web site at IRS.gov. To contact the Social Security Administration, go to its Web site at www.ssa.gov or by calling toll-free 1-800-772-1213.