Tie the knot in your life and also on your taxes.
The honeymoon is over and it’s back to reality. With such a huge change in your life, it’s important to pay attention to how it will affect your taxes. Once the wedding bells in your head subside, update your W-4 form with your employer.
Completing a W-4 form can be intimidating especially knowing that your paycheck depends on it. Don’t let your tax return take the fun out of your recent marriage. Let us help you fill out your W-4 so that you can still break even this tax season!
You just got married.
Congrats to all of you newlyweds out there! Once you’ve found a place in your cabinets for all of those trinkets on your Bed Bath & Beyond registry, make sure you speak with your employer. You may or may not know already but filing a joint tax return screams ‘tax benefits’!
You should update your W-4 form to reflect your married filing status ASAP. You’ll want to do this as soon as possible so that it reflects on your tax return when you file for the year.
As a married couple with two sources of income, your tax rate is bound to change. Be sure to sit down with your spouse and discuss the household income you’ll both be bringing in. If one of you makes significantly less income, your joint tax rate could be brought down. What if one spouse is earning significantly more? You could be entering into a higher tax bracket.
You’re married… and just had a baby!
Babies probably play the biggest role in tax benefits. Funny…considering they can hardly utter ‘W’ or ‘4’. When you have a baby, you can claim an additional allowance. As a married couple planning to file a joint return, it is recommended that the spouse earning the higher income claim the additional allowance(s). The other spouse will not need to update their W-4 form. You may also qualify for the Child Tax Credit or Child Care Tax Credit depending on your income.
Claiming a higher amount of allowances on your W-4 form will allow for less to be withheld from your paychecks. If you leave your withholdings as-is, your tax refund may be larger than necessary. Plus, you’ll probably need a little extra for Pampers and ear plugs (kidding!) throughout the year.