Whether you’re on the verge of saying "I do" or have just recently celebrated your journey into marriage, there are some crucial tax insights that every newlywed needs to know. If you want to navigate the tax landscape with confidence—and make informed financial decisions along the way—then you’ll definitely want to cross these items off your list!
The “Happily Ever After” Tax Prep Checklist
Being proactive can help you optimize your financial position as a married couple and save yourself from future headaches. While every situation is different, these are some of the most helpful tax tips for people who have just tied the knot.
1. Update forms for name and address
When your marriage comes with a name change, you’ll need to complete Form SS-5 to notify the Social Security Administration (SSA). This is crucial because your names will need to be synchronized for accurate recordkeeping. The IRS cross-references these details, and any discrepancies might lead to rejection of your joint tax return.
For a change in address, you’ll need to update both your employer and the Postal Service. This will help ensure that any W-2 will get delivered appropriately at year-end. You should also consider notifying the IRS of your updated address using Form 8822.
2. Review your benefit plans
It’s typically a good idea to check for any mid-year benefit plan adjustments after a marriage, so be sure to take a look at your health, dental, auto, and home insurance coverages. You might have the option to combine benefits in certain areas for a more strategic setup.
In addition, you’ll want to assess the tax implications related to any health savings accounts, dependent child care benefits, and other pre-tax benefits that you and your partner may be receiving from employers. Once you assess those numbers, you may need to adjust your withholdings, especially if your new household income will be pushing you into a higher tax bracket. Recalculating your payroll withholdings can help give you peace of mind and avoid any surprise bills before the tax season. Then you can submit updated W-4 forms, as needed, to minimize your tax liability when you file.
3. Update legal documents and beneficiaries
As with any significant life event, the marriage milestone can serve as a great reminder to review your legacy planning. Working together to revise your beneficiaries and any associated legal documents will help you maintain consistency across your living wills, insurance policies, and property titles. Pay special attention to retirement savings accounts and pensions too, then mark your calendar to review them on a regular basis going forward.
Need Help with Your Tax Planning?
The tax landscape is always complex, and launching into a new chapter of life with a marriage doesn’t exactly make anything easier. A little planning can make a major difference. By working ahead and analyzing the tax ramifications of your new marriage status, you’ll be in a better position to optimize your tax benefits.
Our team at NSO & Company can help you and your spouse understand the potential tax advantages and implications for the road ahead. We always welcome conversations with new clients and referrals. Let’s schedule your tax planning session to keep your future bright!
