A Tax Fact from The Tax Institute at H&R Block

You got 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 got 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 will likely be delayed. That means your refund may also be delayed. Ugh! Go to Twww.SSA.govT and find out what you need to do to get a new card – and then do it! No excuses.

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 $5,000 on your 2008 return ($6,000 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 2008 deduction will be limited if the modified AGI (MAGI) on your joint tax return is $85,000 or more and you are an active participant in an employer’s qualified retirement plan. If you’re not an active participant but your spouse is, your 2008 deduction is limited if your MAGI is $159,000 or more.

Your home. You should 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 filled out at the post office. Forwarding mail takes longer, which can delay refunds, and certain types of mail can’t be forwarded. To change your address, file TIRS Form 8822T, Change of Address.

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.