Just Married? It's a Good Time to Check Your Tax Withholding
Wedding planning usually focuses on venues, flowers, travel, and thank-you notes. Taxes rarely make the list.
But if you recently got married, one of the smartest financial moves you can make is reviewing your tax withholding.
A change in marital status can affect how much tax should be withheld from your paycheck, and failing to update your withholding could lead to an unexpected tax bill, or a larger refund than necessary, when you file your return.
Why Marriage Can Change Your Tax Situation
For federal tax purposes, if you are married on December 31, the IRS generally considers you married for the entire year. That means you'll typically file either Married Filing Jointly or Married Filing Separately.
Many couples benefit from filing jointly, but the amount of tax withheld from their paychecks may need adjustment, especially when both spouses work.
Update Your Form W-4
The IRS recommends that newly married couples review and update their Form W-4 with their employers.
Use the IRS Tax Withholding Estimator
The IRS Tax Withholding Estimator can help determine whether your withholding is on track by considering filing status, income, credits, deductions, and other factors.
Don't Forget to Update Social Security Records
If either spouse changes their name after marriage, updating records with the Social Security Administration should be a top priority.
The IRS matches the name and Social Security number shown on a tax return against SSA records.
If the name on the tax return does not match the name on file with Social Security, the return may be rejected when electronically filed or processing may be delayed.
Other Important Tax Updates for Newlyweds
Marriage often brings other changes that can affect your tax return, including updating addresses, reviewing beneficiary designations, evaluating filing status options, and adjusting estimated tax payments if needed.
The Bottom Line
Taking a few minutes now to update your W-4, verify your withholding, and ensure your Social Security records are current can help prevent surprises and filing problems next tax season.
If you've recently married and would like help reviewing your withholding, filing status options, or overall tax situation, contact GurelCPA. We offer a free initial consultation and would be happy to help.
The article is meant for informational purposes only. Please contact me directly to discuss how this applies to your individual tax situation.