Don’t you wish that when you got married someone had gone to the trouble of putting together a simple checklist for what you need to do? This list doesn’t include thank you notes or combining Netflix accounts, but it does cover the essentials that you’re going to need to do for your taxes. Here’s our tax checklist for newlyweds for 2016:
- Notify the Social Security Administration of any name change. They IRS has a name match program with the SSA and might reject your deductions, your joint filing status, or other things if the names on your return don’t match the name they have on file. To do this, file form SS-5 with the Social Security Administration. This is currently a direct link to the form: https://www.ssa.gov/forms/ss-5.pdf
- If one or both of you are moving, use form 8822 to update your address with the IRS. This is currently a direct link to the form: https://www.irs.gov/pub/irs-pdf/f8822.pdf
- If one or both of you are moving, fill out mail forwarding paperwork with the post-office (it’s usually better if you do this at the office that you are moving away from).
- If one or both of you are moving, make sure that you update your employer with your new address so that they know where to send your W-2 and other tax paperwork.
- If you’re selling a residence (or two) make sure that you review the effect on your taxes, probably under capital gains laws and rules. It can have an outsized effect if one of you has only been in your home for a short time, or if a residence has greatly appreciated in value.
- Review your legal documents. Are your bank accounts, property titles, credit cards, insurance policies, and living wills up-to-date? Are both of your names on them? If anything happens to one of you, not having them in both names can make things complicated.
- File new W-4s with your employers. Recalculate your payroll withholdings and then refile, because you don’t want to be stuck owing taxes at the end of your first year together. There’s a reason the first and biggest question on a W-4 is what your marital status is.
- Update your healthcare, insurance, and retirement accounts. Marriage is usually a “qualified event” so that you can make mid-year changes to your various benefits outside of open enrollment.
The tax consequences of getting married are complex and you should probably talk with your accountant before and after you get married to make sure there are no surprises. If you’re looking for a CPA in the Albuquerque area, consider us.