4 Tax Tips for Newlyweds

The Editors of WOMEN'S HEALTH

You love your new hubby. Really. It's just that you'd finally figured out how to file taxes on your own, and now your new status is a big fat wrench thrown into your W-4. Luckily, this is one of the few things marriage doesn't make much more complicated. When you file taxes for two just keep these four simple rules in mind:

Make sure the IRS knows your new name
If you've changed your name, you need to let the government know at least three weeks before April 15. The IRS checks your information against your file at the Social Security Administration, and if it doesn't match, your return gets kicked back. Go to ssa.gov and download form SS-5. Fill it out and take it with your marriage certificate and your driver's license or passport to the SSA office. The change will be verified within 48 hours and your new card will arrive in about two weeks.

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Unless you both make bank, file jointly
Most couples are better off going in together, particularly if there's a wide gap in your incomes, says Barbara Weltman, a contributing editor to J.K. Lasser's Your Income Tax. When your salaries are averaged, the more meager of the two could sink the higher one into a lower tax bracket, saving you both money. You may have heard about the Marriage Penalty, a fine leveled at some wedded couples, but it only applies to couples who are earning two relatively high salaries (we're talking a combined income of more than $131,450), which might bump you into the 28 percent tax bracket, says Bob Meighan, a vice president at the tax-prep software company TurboTax. When you have that much dough rolling in, submitting separately might be the way to go, because averaging your incomes won't help. The other common reason to file separate returns is when writing off medical expenses. To be deductible, they must add up to more than 7.5 percent of your adjusted gross income, an amount that's easier to achieve if you file solo.

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If you do file individually, divvy up deductions wisely
State law decides which of you takes shared deductions like mortgage interest, so know your facts going in. As a rule, give the biggest deductions to whichever of you brings home the biggest slab of bacon, says Mark Luscombe, a principal analyst at tax information publisher CCH. Because that partner faces higher tax rates on their earned income, they're likely to benefit more from the break. One caveat: Most deductions decline once your income hits $100,000. If you clear that mark, let your spouse take the write-off. If you have an accountant, ask him to work up every possible scenario to see which is best for you. (If you don't, use online tax software to see for yourself.)

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Stay out of his hot water
When you file together, you're both signing off on the information you report. If your hubby has kept less than stellar records--especially if he owns a business or is self-employed-or if he's thinking about making some risky omissions, don't get tangled up in it. The IRS views joint filers as a single entity, so if your return gets red flagged you could both lose your refund or end up owing back taxes. If that's the case, play it safe and file your own return. Then vow to help him get his numbers in order for next year.

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