Tax Tips: Tax checklist for newlyweds
Summertime is common time for wedding bells to ring, and newlyweds can make their tax filing easier by doing a few things now. A taxpayer's marital status as of December 31 determines their tax filing options for the entire year, but that's not all newlyweds need to know.
Report a name change
Report any name changes to the Social Security Administration. The name on a person's tax return must match what’s on file at the SSA. Otherwise, it could delay any tax refund. Taxpayers should file Form SS-5, Application for a Social Security Card with their updated information. It’s available on SSA.gov, by phone at 800-772-1213 or at a local SSA office.
Update address
Notify their local post office, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must compete and submit Form 8822, Change of Address. See page 2 of the form for detailed instructions.
Check withholding
Newly married couples must give their employers a new Form W-4, Employee's Withholding Certificate, within 10 days. If both people work, this could move them into a higher tax bracket or be affected by the additional Medicare tax. The Tax Withholding Estimator on IRS.gov can be used to check withholding and provide tips for completing a new Form W-4.
Review filing status
Married people can choose to file their federal income taxes jointly or separately. While filing jointly is usually more beneficial, it's best to figure the tax both ways to find out which makes the most sense.
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Tax Tips: Potential tax benefits for homeowners
Owning a home costs money, but there are tax benefits available to help homeowners save on some of common costs of homeownership. Homeowners should review the tax deductions, programs and housing allowances to see if they are eligible.
Deductible house-related expenses
Most home buyers take out a mortgage to buy their home and make monthly payments to the mortgage holder which may bundle other home-related costs.
Taxpayers must itemize their deductions to deduct homeownership expenses.
The costs the homeowner can deduct are:
• State and local real estate taxes, subject to the $10,000 limit.
• Home mortgage interest, within the allowed limits.
Homeowners can't deduct any of the following items:
• Insurance including fire and comprehensive coverage and title insurance.
• The amount applied to reduce the principal of the mortgage.
• Wages paid to domestic help.
• Depreciation.
• The cost of utilities, such as gas, electricity or water.
• Most settlement or closing costs
• Forfeited deposits, down payments or earnest money.
• Internet or Wi-Fi system or service.
• Homeowners’ association fees, condominium association fees or common charges.
• Home repairs.
Mortgage Interest Credit
The Mortgage Interest Credit helps people with lower income afford homeownership. Those who qualify can claim the credit each year for part of the home mortgage interest paid. A homeowner may be eligible for the credit if they were issued a qualified Mortgage Credit Certificate from their state or local government.
Ministers and military housing allowance
Ministers and members of the uniformed services who receive a nontaxable housing allowance can still deduct their real estate taxes and home mortgage interest. They don't have to reduce their deductions based on the allowance.
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