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NEWLYWED ADVICE FROM
THE TAX MAN
The
IRS Has Handy Tips That Can Make Your Love Nest a Happy Home
It may not be high on the list of wedding
planning activities, but there are a few, simple steps that can help keep tax
issues from interrupting newly-wedded bliss, according to the Internal Revenue
Service.
With the wedding season in full swing, the IRS advises the
soon-to-be married and the just married to review their changing tax status.
Choosing the right tax form and filing status can help save money≈and even
prevent problems with missing a refund check. Among those tax-related changes
that newlyweds should think about now are notification of change of name and
change of address. Later, as filing season approaches, they should consider
itemizing their deductions, selecting the right tax return form to use and
choosing their filing status.
No one should delay the cake cutting or honeymoon because
of taxes. But here are some helpful hints for later:
--- Use The Correct Name: Taxpayers must
provide correct names and identification numbers to claim personal exemptions or
the Earned Income Tax Credit on their tax eturns. A taxpayer who changes his or
her last name upon marrying should let the Social Security Administration know
nd should update his or her Social Security card so the number matches the new
name.
Form SS-5, ⌠Application for a Social Security Card,■is
available through the SSA website at www.ssa.gov or by calling 1-800-772-1213.
≈Report Your Change Of Address:
If one or both spouses are changing their
address, they should notify the IRS, as well as the U.S. Postal Service, to be
sure they receive any tax refunds or IRS correspondence. Itâ–“s a simple process.
All they have to do is send in Form 8822, ⌠Change of Address Form,■which is
available by calling the IRS at 1-800-TAX-FORM (1-800-829-3676), at most local
IRS offices, or on the IRS website at www.irs.gov. Or they can write to the IRS
center where they filed their most recent return, they should include their full
name, old and new addresses, SSN and signature. And they should remember to let
their employers know about any changes to their name or address so they can
receive their paychecks and W-2s.
≈Get That Refund Check:
Each year, thousands of tax refund checks are returned by
the Post Office to the IRS as undeliverable, usually because the recipient has
moved. Notifying both the Post Office and the IRS of an address change in a
timely manner can help ensure the proper delivery of any refund checks. To check
the status of a tax refund, use the ⌠Where▓s My Refund■service on the IRS
website or call the toll-free automated refund line at 1-800-829-4477. If
a refund check was returned to the IRS as undeliverable, call the IRS toll-free
customer service line at 1-800-829-1040 to arrange for reinsurance.
≈Select The Right Form:
Choosing the right individual income tax form can help save
money. Newly married tax payers may find that they now have enough deductions to
itemize on their tax returns. Deductions for money paid for medical care,
mortgage interest, contributions, casualty losses and certain miscellaneous
costs can reduce federal taxes. Form 1040, which is used to report all types of
income, deductions and credits, is the one to use if itemizing. Forms 1040EZ and
1040A do not allow such itemization.
Taxpayers who do not receive their preferred form in the
tax package sent to them during filing season may obtain the form from the IRS
website, at a local IRS office, or by calling 1-800-TAX-FORM (1-800-829-3676).
≈Choose The Best Filing Status
: A personâ–“s marital status on December 31 determines
whether the person is considered married for that year. The tax law allows
married couples to choose to file their federal income tax return either
jointly or separately in any given year. Choosing the right filing status can
help save money.
∙ A joint return (Married Filing Jointly) 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 (Married Filing Separately), 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.
Figuring the tax both ways can determine which filing status will result in the
lowest tax≈usually, it▓s filing jointly.
More detailed information on filing status can be found in
Publication 501, ⌠Exemptions, Standard Deduction, and Filing Information,■on
the IRS website.
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