Tax Tip of the Week
For the week of May 31, 2004

Planning a wedding? Don't forget taxes

If you're planning a summer wedding, here's some advice that can help you avoid headaches at tax time.

If you take a new married name, contact the Social Security Administration to notify it of the change and to obtain a new social security card. If you have a new address after the wedding, notify the IRS so your tax forms, tax refunds, and IRS notices will arrive at the right location. File a change of address on IRS Form 8822.

Spend a little time with your tax advisor to evaluate your tax situation as a married couple. Depending on your income levels and deductions, you and your spouse could be hit by the marriage penalty. This results in higher taxes than the combined taxes you would owe as singles. In some cases you could pay lower taxes as a married couple. It's important to find out as early as possible, while there are still a few months left in the tax year to adjust your withholding if necessary.

As a newly married couple, it is important to update your estate plan. This might be as simple as preparing a basic will. You may want to change the beneficiary designations on insurance policies, IRAs, and 401(k) plans to include your new spouse. You might also decide to change your bank accounts to joint ownership.

Taxes are not the most romantic thing for newlyweds to think about, but look upon it as an essential part of setting up your new household. Please call if you would like assistance in reviewing your tax situation.

"Tax Tips" are published weekly to provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders, and current tax information.

The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.

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