NEWLYWED OR RECENTLY DIVORCED TAX TIPS
Newlyweds and recently divorced people have a lot to think about when it comes to their income taxes.
There are both tax saving opportunities and well as potential tax pitfalls.
Below are some tips to help in the planning:
1-Report changes in name and address-When a name changes, it is important to report that change to the Social Security Administration (SSA). The name on a person's tax return must match what is on file at the SSA. If it doesn't, it could reject an e-filed return or delay processing of a return mailed to the IRS. File Form SS-5, Application for a Social Security Card with the SSA. It is available online at ssa.gov, by calling 800-772-1213, or at a local SSA office.
If your address has changed, notify the IRS using Form 8822, Change Of Address. Notify the U.S. Postal Service to forward mail by going online at USPS.com or at a local post office.
NOTE: It is important that the IRS have your correct mailing address at all times. Failing to do so means you may not recieve IRS notices or letters you are required to respond to, which could lead to serious IRS problems down the road. The IRS does not send e-mails, call you, or contact you on social media sites.
2-Consider changing withholding of federal income tax-Ensure that you are having the proper amount of income tax withheld from your paycheck with ALL employers. Form W-4 and the IRS withholding tax estimator are valuable tools to update your information for withholding purposes. Visit irs.gov.
3-Consider your filing status-Your marital status for the year is determined as of December 31 of that year. There are 5 filing status available and you should see which apply to you and which is the most advantageous that will save you the most money on your income taxes each year.
4-Consider which children may qualify to be your dependents each year if you and they meet certain criteria.
5-Talk to your spouse (and to a competent estate planning attorney) about the need to plan your estate or make adjustments to your estate plan documents already in place so that your estate plan meets your current needs and circumstances.
6-If children are involved, consider their tax circumstances and how it may impact your overall tax situation.
CALL NOW 561-746-1926 or 561-339-8102 if you have any questions or concerns or would like to schedule a FREE, Confidential, No-Obligation Tax-Saving Consultation.