Tax Advice for Newlyweds

The Internal Revenue Service has some advice for newlyweds.

But only regarding tax issues.

With the June wedding season in full swing, the IRS advised the
soon-to-be married and the just married to review their changing tax
status. Choosing the right tax form and filing status can help save
money -- and even prevent problems with missing a refund check -- the
agency said.

Tax-related things that newlyweds should think about now are
notification of change of name and change of address. Later, as filing
season approaches, they should consider itemizing their deductions,
selecting the right tax return form to use and choosing their filing
status, the IRS said.

Hints from the agency:

• Use the correct name. Taxpayers must
  provide correct names and identification numbers to claim personal
  exemptions or the Earned Income Tax Credit on their tax returns. A
  taxpayer who changes his or her last name upon marrying should let the
  Social Security Administration know and should update his or her Social
  Security card so the number matches the new name.

  Form SS-5, "Application for a Social Security Card," is available
  through the SSA Web site at www.ssa.gov or by
  calling toll-free 1-800-772-1213.

• Report your change of address. If one
  or both spouses are changing their address, they should notify the IRS,
  as well as the U.S. Postal Service, to be sure they receive any tax
  refunds or IRS correspondence.

  Send in Form 8822, "Change of Address Form," which is available by
  calling the IRS at 1-800-TAX-FORM (1-800-829-3676) or on the IRS Web
  site at www.irs.gov.
  Or write to the IRS center where you filed your most recent return;
  include your full name, old and new addresses, Social Security number
  and signature.

  Let employers know about any changes to your name or address so you can
  receive paychecks and W-2s.

• Get that refund check. Each year,
  thousands of tax refund checks are returned by the post office to the
  IRS as undeliverable, usually because the recipient has moved.
  Notifying both the post office and the IRS right away of an address
  change can help ensure proper delivery of refund checks.

  To check the status of a tax refund, use the "Where's My Refund"
  service on the IRS Web site or call the toll-free automated refund line
  at 1-800-829-4477. If a refund check was returned to the IRS as
  undeliverable, call the IRS toll-free customer service line at
  1-800-829-1040 to arrange for reissuance.

• Select the right form. Choosing the
  right individual income tax form can help save money.

  Newly married taxpayers may find that they now have enough deductions
  to itemize on their tax returns. Deductions for money paid for medical
  care, mortgage interest, contributions, casualty losses and certain
  miscellaneous costs can reduce federal taxes.

  Form 1040, which is used to report all types of income, deductions and
  credits, is the one to use if itemizing. Forms 1040EZ and 1040A do not
  allow such itemization.

  Taxpayers who do not receive their preferred form in the tax packages
  sent to them during filing season may obtain the form from the IRS Web
  site, at a local IRS office or by calling toll free 1-800-TAX-FORM
  (1-800-829-3676).

• Choose the best filing status. A
  person's marital status Dec. 31 determines whether the person is
  considered married for that year. Tax law allows a married couple to
  choose to file its federal income tax return either jointly or
  separately in any given year. Choosing the right filing status can help
  save money.

  A joint return (married filing jointly) allows spouses to combine their
  income and to deduct combined deductions and expenses on a single tax
  return. Both spouses must sign the return, and both are held
  responsible for the contents.

  With separate returns (married filing separately), each spouse signs,
  files and is responsible for his or her own tax return. Each is taxed
  on his or her own income and can take only his or her individual
  deductions and credits. If one spouse itemizes deductions, the other
  must also.

  Figuring the tax both ways can determine which filing status will
  result in the lowest tax; usually, it's filing jointly. More detailed
  information on filing status can be found in Publication 501,
  "Exemptions, Standard Deduction, and Filing Information," on the IRS
  Web site.

© 2002, The Times-News,
Twin Falls, Idaho. Distributed by Knight Ridder/Tribune Business News.