Tax season has started up, and now everyone is doing their best to get their financial records in order in time to send in their taxes. If you're a newlywed, however, this time of the year can be a little extra stressful, as you've got a new financial situation that you have to figure out before you send in your taxes. Here are a few bits of advice that could help you if you're one of the lucky couples out there!
Talk it Over
After you get back from your honeymoon, it's important that you talk over your new financial situation. This is an important conversation to have because you need to understand how both of your financial histories will combine into one, especially if one of you has a bit of debt, like unpaid student loans for example. It's important that you both understand your financial goals as a couple, and it's important that you both agree on a financial plan. Whatever plan you arrive at will determine your approach to filing taxes this year.
Reassess Your Withholding Status
Next you and your new spouse should reassess your withholding statuses on each of your W-4 forms. You can shift the status from single or to married, or married but withholding at the single rate. How much you withhold will depend on more than simply what your marriage status is; other factors, such as your earnings or how many jobs you both have will affect your status. Be sure to follow up with a tax professional to help you with the specifics of this form. The important thing is that you have to reevaluate your W-4.
To File Jointly or Separately
This is probably the most important question you'll have to answer once it's time to send in your taxes: should you file jointly or separately? Even if you're married, you're still allowed to file separately; however, you should know that there are advantages and disadvantages to either option. For example, remember those unpaid education loans? If you file jointly, you might be able to take an education tax credit. Likewise, if your new spouse already has a child, you could receive tax credit as well if you file jointly. Before you make a decision, consult a tax professional if you can; he or she might be able to help you figure out the specifics.
Of course, these are relatively basic tips; you should definitely research further into each of them so you can get a better handle of your taxes. In any case, good luck and congratulations!
Talk it Over
After you get back from your honeymoon, it's important that you talk over your new financial situation. This is an important conversation to have because you need to understand how both of your financial histories will combine into one, especially if one of you has a bit of debt, like unpaid student loans for example. It's important that you both understand your financial goals as a couple, and it's important that you both agree on a financial plan. Whatever plan you arrive at will determine your approach to filing taxes this year.
Reassess Your Withholding Status
Next you and your new spouse should reassess your withholding statuses on each of your W-4 forms. You can shift the status from single or to married, or married but withholding at the single rate. How much you withhold will depend on more than simply what your marriage status is; other factors, such as your earnings or how many jobs you both have will affect your status. Be sure to follow up with a tax professional to help you with the specifics of this form. The important thing is that you have to reevaluate your W-4.
To File Jointly or Separately
This is probably the most important question you'll have to answer once it's time to send in your taxes: should you file jointly or separately? Even if you're married, you're still allowed to file separately; however, you should know that there are advantages and disadvantages to either option. For example, remember those unpaid education loans? If you file jointly, you might be able to take an education tax credit. Likewise, if your new spouse already has a child, you could receive tax credit as well if you file jointly. Before you make a decision, consult a tax professional if you can; he or she might be able to help you figure out the specifics.
Of course, these are relatively basic tips; you should definitely research further into each of them so you can get a better handle of your taxes. In any case, good luck and congratulations!
This guest post is contributed by Lauren Bailey who particularly enjoys writing about online colleges. Questions and comments can be sent to: blauren99 @gmail.com.
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