Need some help understanding newlywed taxes? It’s that time of year again…time to sort through the folders of paperwork you’ve saved and file your taxes. As you prepare to file taxes jointly or separately as a newlywed couple, there are a few things to keep in mind.
Name Change and Newlywed Taxes
If you or your spouse changed your name after your wedding, be sure to alert the Social Security office by filing the SS-5 form. When the Social Security Administration issues your new social security card in your new name, they typically alert the IRS. Here’s another article on the topic of name change and taxes as newlyweds.
Worried that your name change might slip through the cracks? File the IRS 8822 (it’s free) and you can rest assured that you’ve completely covered your name-change with the IRS. The IRS 8822 form alerts the IRS of your new name, preventing them from holding your tax returns should they be confused about your identity (yes that really happens).
Mine, Yours, Ours
As a single woman, I loved to get my tax return and put a portion in savings and then use the rest to splurge on something great! Be it a purse, furniture or a trip, my tax return sprees took some of the sting out of what I handed over to Uncle Sam. When I got married, I suddenly had someone else’s return money and ideas to deal with.
Now that you’re married, I suggest having a discussion with your spouse about what to do with your returns. If you filed together, will you both determine what to do with the lump sum? Will you split it evenly? Will you split it based on who made what? Tricky questions to answer, but much better to hash expectations and ideas out now then fight about them when the check comes in the mail.
How are you handling newlywed taxes? Have you ever had an argument about it? Have you come up with a great solution?