Getting ready for upcoming nuptials is often equal parts exciting and stressful. Those who are planning a wedding are generally dealing with booking venues, choosing floral arrangements and making sure everyone has responded to invitations. It is unlikely that tax planning is on the pre-wedding “to-do” list.
Financial experts point out that there are numerous tax concerns that can pop up after marriage, as noted in a recent Accounting Today publication. Although the potential tax issues and tips to avoid problems can become overwhelming, there are a few simple steps that you can easily fit in before that first round of taxes as a married couple. Four examples include:
- Potential for gift tax issues. Weddings are expensive. There can be tax consequences if a loved one has helped pay for the event.
- Consistency. If there is a name change after the wedding, make sure the change is updated with the Social Security Administration before filing taxes.
- Filing status. Once you are married, you have a couple more options when it comes to choosing your filing status for your tax returns. You can choose between filing jointly or separately. There are pros and cons to both, and each should be taken into consideration before officially filing.
- Withholdings. It may be wise to adjust the amount of income that is withheld for tax purposes after a marriage. Filing status may change, as well as the overall income. These changes could warrant an update to the withholding status as well.
If tax controversies arise, it is wise to seek legal counsel. An experienced tax controversy lawyer can guide you through issues like audits and offshore issues, civil investigations and criminal. Contact a legal professional promptly to help better ensure your legal rights are protected.
Robert J. Fedor, Esq., L.L.C. staffs tax attorneys with experience and skills in dealing with the IRS. They have a comprehensive knowledge of tax law, the related IRS and Department of Justice procedures, and effective litigation strategies.
