- Name and address changes.-When you file an income tax return, the names and Social Security numbers on your 1040 form must match your records at the Social Security Administration(SSA). If you change your name when you get married, you must report it to the SSA. If you don’t change your name with the SSA, then your tax return will show your maiden name.
- Withholding tax changes.-When your marital status changes, you will have to provide your employer with a new Form W-4. Keep in mind, if both you and your spouse are employed, your combined annual income may push you into a higher tax bracket.
- Filing status changes.-Once you get married, the only filing statuses that can be used on your tax return are married filing jointly (MFJ) or married filing separately (MFS). Your filing status is determined on December 31 of each year, so even if you were not married for most of the tax year, you do not have the option of filing as single if you are married by year end. Generally, married filing jointly provides the most beneficial tax outcome for most couples because some deductions and credits are reduced or not available to married couples filing separate returns. Request a filing status optimization if you would like us to compare MFJ with MFS.
- Affordable Care Act.-If either or both of you receive advance payments of the premium tax credit for health insurance purchased through a Federal or State Marketplace, you should report your marriage (as well as any associated changes, such as a move to a different state, change in income, or change in family size) to the Marketplace. This will allow the Marketplace to adjust your advance credit payments if necessary.
If you have questions about your new filing status, please do not hesitate to call Jellison CPA!