Indianapolis, In. — Summertime has become an increasingly popular season for weddings, and the Indiana Department of Revenue (DOR) wants to help Hoosier newlyweds as they embark on wedded bliss to avoid the headache of tax issues.
From name changes to filing status, DOR has several tips for 2018 newlyweds to be ready for next tax season and to ensure refunds are not delayed:
1.) Name changes: If a customer changes their name as a result of marriage, the first step is to report this change to the Social Security Administration (SSA). Since tax returns are filed under an individual’s Social Security number (SSN), it is important to complete the name change process before filing a tax return. The name on the tax return must match the SSN to ensure any potential refund goes to the correct person. More information can be found online at www.SSA.gov.
2.) Change withholding status: Newly married individuals may need to update their federal W-4 and state WH-4 forms to reflect additional exemptions or change their higher standard deduction. By claiming an additional allowance or changing the withholding status to married, fewer taxes may be withheld from their pay.
3.) Update address: If marriage results in a change of address, be sure to update the address on file with DOR. DOR offers several methods for customers to update their address, including in-person, by fax or mail. By updating the address, customers can ensure they will receive important information from DOR on time, which may include a refund check. Details can be found on DOR’s website at www.in.gov/dor/4706.htm.
4.) Evaluate tax filing status: Once an individual is married, the filing status on their tax return must be either: married filing jointly or married filing separately. Often, the option married filing jointly provides the most beneficial tax outcome for most couples, due to the available credits and deductions. However, all couples should explore both options to determine what works best.
Changing filing status may also change an individual’s tax bracket, so the income might be taxed at a different rate. If a married couple chooses to file a joint return, their income is now combined which may result in one or both individuals being in a higher tax bracket.
Remember, even if the wedding date is December 30, 2018, a couple is still considered married for the 2018 tax year.
