Life Support - Tax Facts
Brides & Grooms: Married Now, With Deductions
A Tax Fact from The Tax Institute at H&R Block
So you're married. Congratulations! And now it's time to consider taxes. Here are a few tips to make your first tax year together go smoothly.
Social security number - Your social security number stays the same of course. But if you changed your name when you married, be sure to apply for a new social security card in your new name. If your name and number don't match, the IRS processing of your return may be delayed. That means your refund may be delayed. Ugh!
Retirement accounts - First, be sure to get your employer to change your filing status on your respective 401(k) accounts. Also, if your income meets the criteria, each of you can claim an IRA deduction of up to $4,000 on your 2007 return ($5,000 if you're 50 or older). To do this, the two of you together must have earned income that is at least as much as your IRA contribution, If one of you does not work, you may still be eligible for a spousal IRA. Your deduction may be limited if your AGI is $83,000 or more.
Our home - You might want to inform the IRS of your new address. It's not required, but it's better than counting on your mail being automatically forwarded to you based on the change of address form you filed at the post office. Forwarding mail takes longer, which can delay refunds. To change your address, file an IRS Form 8822.
Filing status - The IRS allows couples to file as "married filing jointly" or "married filing separately." Obviously you want to choose the one that gives you the best tax advantage. It's a bit tricky, so it's smart to consult with a tax professional for advice, particularly for the first year you file.
This Tax Fact is brought to you by The Tax Institute at H&R Block.
To view other helpful tax information or listen to our Tax Fact podcasts, visit www.digits.hrblock.com
As always...everyone's tax situation is different, so be sure to consult a tax professional or financial advisor before making important financial decisions.
This Tax Fact is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice, nor is it intended to be used to avoid IRS penalties.
A Tax Fact from The Tax Institute at H&R Block
So you're married. Congratulations! And now it's time to consider taxes. Here are a few tips to make your first tax year together go smoothly.
Social security number - Your social security number stays the same of course. But if you changed your name when you married, be sure to apply for a new social security card in your new name. If your name and number don't match, the IRS processing of your return may be delayed. That means your refund may be delayed. Ugh!
Retirement accounts - First, be sure to get your employer to change your filing status on your respective 401(k) accounts. Also, if your income meets the criteria, each of you can claim an IRA deduction of up to $4,000 on your 2007 return ($5,000 if you're 50 or older). To do this, the two of you together must have earned income that is at least as much as your IRA contribution, If one of you does not work, you may still be eligible for a spousal IRA. Your deduction may be limited if your AGI is $83,000 or more.
Our home - You might want to inform the IRS of your new address. It's not required, but it's better than counting on your mail being automatically forwarded to you based on the change of address form you filed at the post office. Forwarding mail takes longer, which can delay refunds. To change your address, file an IRS Form 8822.
Filing status - The IRS allows couples to file as "married filing jointly" or "married filing separately." Obviously you want to choose the one that gives you the best tax advantage. It's a bit tricky, so it's smart to consult with a tax professional for advice, particularly for the first year you file.
This Tax Fact is brought to you by The Tax Institute at H&R Block.
To view other helpful tax information or listen to our Tax Fact podcasts, visit www.digits.hrblock.com
As always...everyone's tax situation is different, so be sure to consult a tax professional or financial advisor before making important financial decisions.
This Tax Fact is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice, nor is it intended to be used to avoid IRS penalties.
