Weddings and taxes – A checklist
When planning a wedding, the to-do list seems endless. But, don't make the mistake of neglecting some tax planning for this life-changing event. If you're planning your own wedding or helping a loved one, here are some income tax-related actions to take in preparation for the big day.
• Check the effect marriage will have on your tax bill. If both spouses work and earn about the same income, you may pay higher taxes due to the "marriage penalty." You may need to adjust your tax withholding to avoid a big tax bill next April, as well as potential penalty and interest charges for underpayment of taxes.
• Notify the Social Security Administration of any name change.
• Notify the IRS of any address change because of a move.
• File new Forms W-4 at work to reflect married status.
• If either of you has an IRA, check the effect marriage will have on the deductibility of contributions.
• Update estate plans, making appropriate changes to wills, powers-of-attorney, health care directives, etc.
• Review beneficiary designations on retirement plans and insurance policies.
If you need help, give our office a call.