ROCK HILL, SC (CN2 NEWS) – Newlyweds may not realize it, but as a married couple their taxes change, their Social Security benefits change and their health care coverage changes – here’s an update from the SC Department of Revenue (SCDOR) on tax advice – to make navigating these changes easier.
The SCDOR press release says that in 2021, around 29,000 couples were married and expect that number of nuptials to increase this year.
Click here for tax tips from SCDOR that will enrich your life and take the stress out of tax time.
- Consider a premarital consultation. If you both complete a qualifying premarital counseling course within 12 months of getting your marriage license, you can claim a $50 non-refundable credit on your personal income tax return ($25 if only one d between you completes the course). Visit our website for more information.
- Adjust your W-4, the form that regulates the amount of tax withheld from your salary. You may need to have more or less tax withheld. The idea is not to withhold too little and be surprised next year with an unexpected tax bill, or to withhold too much money that could be used for other expenses throughout the year. year. According to the IRS, newly married couples must submit a new Form W-4, Employee’s Withholding Allowance, to their employer within 10 days.
- Notify government of name and address changes. Because state and federal tax returns are tied to Social Security numbers, notify the Social Security Administration of any new names using Form SS-5. You will need to notify the US Postal Service, IRS (using Form 8822) and SCDOR (using MyDORWAY or Form SC8822I) of any change of address.
- Decide if you will file next year’s tax returns as a married spouse or married separately. Choosing the right filing status can save you money.
- Joint filing allows both spouses to potentially claim earned income tax credits, student loan interest, child tax credits, and a larger deduction. But it can also make you responsible for your spouse’s tax debts, if they have any.
- With separate filings, each spouse is solely responsible for their filing and tax liability. If you are filing separately, you must both claim the standard deduction or itemize. One of you cannot itemize while the other claims the standard deduction.
- Consider discussing the right filing status for you with a certified tax professional.
- Select the right form to file your returns. For example, a couple may have enough deductions jointly to itemize, but may not have enough when filing separately.