Must-Have Tax Tips for Newlyweds

It's that time of year: tax season! As you navigate your taxes as a newlywed, take note of these tips from Lisa Greene-Lewis, accountant extraordinaire and Lead CPA at TurboTax.

Tax Tips for Newlyweds

Confirm your personal information is current and correct.

Before you file your taxes, make sure that the name and social security number on your tax return are what is on record with the Social Security Administration. If you haven't already contacted them and submitted a form for your name change, do so as soon as possible. Similarly, make sure your employer has the correct information so your W-2s are accurate.

Take advantage of the marriage benefit.

Married couples filing jointly are taxed at a different rate than single individuals, and a married couple that files a joint return will often find that their taxes owed are lower. For example, a single person earning $50,000 per year in 2015 tops out at the 25 percent tax rate. However, if this person marries someone earning $20,000 each year, their total income is $70,000, and their joint income will top out at the 15 percent rate as long as they jointly file their tax returns. In effect, you can earn more money together while paying a lower tax rate.

Taking standard vs. itemized deductions.

Before you were married, you may have taken the lower standard deduction, but after marriage, you may have more tax deductions together that enable you to take the higher itemized deductions. Don't forget to gather your tax forms and receipts for things like home mortgage interest, property taxes, car registration, unreimbursed employee expenses, and charitable contributions, which may give you more tax deductions and a bigger tax refund. In general, you to want to itemize your deductions when your total eligible deductions exceed your standard deduction. Currently, the standard deduction for those married filing jointly is $12,200. Though not directly tied to marriage, many couples also benefit from claiming dependent and personal exemptions. For each one you qualify for and claim, you will lower your taxable income. Currently, the exemptions are $3,900 each.

Start a spousal IRA.

Individual Retirement Accounts, or IRAs, help you to make contributions towards your retirement. One of the eligibility requirements for making a contribution to IRA is that you have a taxable income. However, there is an exception to this rule for married couples who file joint tax returns when one spouse has taxable income. According to this law, the spouse who has a taxable compensation is permitted to contribute to the IRA account of the spouse without a taxable income. This is referred to as Spousal IRA, whereby the nonworking spouse funds their IRA using the income of their partner.

File your taxes on time.

The deadline to file taxes is Monday, April 18. Make it a stress-free season by filing as an in-the-know newlywed!   Get more financial advice on Loverly! 11 Sneaky Wedding Costs That Can Bust Your Budget How to Set Your Wedding Budget How to Talk to Your Parents About Your Wedding Budget