by Blair Butters | Oct 22, 2019 | Uncategorized
Generally, it’s rare for people to think about their taxes when major life changes occur, and understandably so. Paperwork is the farthest thing from the minds of those who just got married, had a baby, or bought their first home. Though your tax filing status or the amount of money to withhold on your paychecks aren’t your top priorities when these changes occur, it’s important to round back to your taxes once the dust begins to settle. This month, we’ll review the top three major life changes that require updates to your tax filing and outline the most important steps you should take before tax season. Getting Married 1. Update your last name with the Social Security Administration (SSA). Once you’ve unpacked the wedding presents and sent off your thank-you cards, be sure to let the SSA know if you decided to change your last name to match your spouse’s. The name on your tax return must match your name on file with the SSA. If it doesn’t, your tax return may get rejected – delaying your return until the confusion is rectified. If the tax deadline is nearly here and you’re concerned the name change may not be updated in time, simply file a joint return under the original name that the SSA has recorded. Then, update your name with the SSA after your tax return (or bill) arrives. 2. Update your paycheck withholding. Sit down with your new spouse, your budget, and a W-4. Determine which tax withholding allowances you qualify for, and who will claim which ones. If you are uncertain where to start, it would...
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