The Tax Consequences of Tying The Knot
June is typically one of the most popular months for couples to tie the knot.
If you are getting married this month, I hope you have already considered the tax consequences associated with this union.
You’ll discover there are multiple tax issues that kick in as soon as you say, “I do.”
If you haven’t considered the tax implications, you could benefit from reading the rest of this blog.
And, no matter what month you get married, be sure to use the items below as your guide to make sure you aren’t taken by surprise when you have your 2017 taxes prepared next year.
• First of all, look into the various pros and cons to filing jointly or separately.
• Will either your name or your spouse’s name change on the tax return? If so, a matching change needs to be registered with the Social Security Administration
• Employee benefits are extended to spouses, which can mean making some complicated choices especially in the area of healthcare. Review all of your options with your accountant to make the choices that will be most beneficial.
• With the potential for a new filing status, new dependents, and maybe two income streams, have your tax professional review your W-4s and check whether you’re withholding too much or too little.
• Will you be using a charitable organization’s facilities for the wedding or the reception? Will you be donating any wedding leftovers? If so you’ll want to keep track of the value of those donations to take advantage of a charitable donation tax deduction.
• Considering how expensive weddings have become, if parents or grandparents paid for expenses related to the special day, there may be gift tax issues.