Don't Pay Your Spouse's Tax Debt Whether you're planning a wedding, or you're newly married, you have a lot to learn in this arena. I'm not qualified to give marriage counseling, but here's some tips to help you avoid stress when tax time rolls around:
1. Name Change Drama: You're required to notify the Social Security Administration Report of your name change. Your name and your Social Security Number must match when you file your next Tax Return.
Here's what you do:
- File Form SS-5, Application for a Social Security card at your local SSA office. You can download the form from their website, www.socialsecurity.gov or you can call 800-722-1213.
2. Address Change: Moving in with the new spouse? You're required to notify the IRS when you change your address.
Here's what you do:
- Send Form 8822, Change or Address to to the IRS. You can download it at IRS.gov, or order it from 800-829-3676 (800-TAX-FORM).
-Don't forget to notify the U.S Postal Service so you can receive IRS correspondence. Don't try to avoid them, the IRS will find you.
-Don't forget to notify your Employer. Report your name and address changes to ensure that you'll receive receipt of your Form W-2 and your Wage and Tax Statement at the end of the year.
3. Check Your Withholding- You and your spouse's combined income could place you in a higher tax bracket. Double check your withholding to make sure the correct amount is being withheld for your filing status. The IRS has a convenient Withholding Calculator that will help you do this now.
Here's what to do:
-Go to IRS.gov and type "IRS Withholding Calculator" into the search bar
-Be prepared with your personal payroll and tax information to enter the information
The IRS Withholding Calculator will provide a new Form W-4, Employee's Withholding Allowance Certificate. Just print it out and give it to your payroll department so they will withhold the correct amount from each paycheck.
4. Don't Marry Tax Debt You can marry debt. Watch out if you're in one of the Community Property States, which include:
If you live in any of the States, be careful who you marry. If they owe, YOU OWE. And nothing will turn your marriage into an episode of "Married with Children" faster than a shared tax debt issue. Here's some more scary facts:
-As long as you are legally married, the IRS can seize money and assets from YOU for your SPOUSE'S Debt.
-No Innocent Spouse Relief is allowed, the spouse is guilty by way of the state laws.
Scared yet? Make sure your spouse doesn't have a Tax Debt issue before you marry them. And if they don't want you to know it, why are you marrying them in the first place?
Tip- There are plenty of reasons to rethink marriage. You may have heard of "Innocent Spouse Relief" or "Equitable Relief" which relieves the "innocent spouse" from Tax Obligation. Well, if you signed the Tax Return for that Tax Year, you're guilty and it will take an act of congress to prove you're "innocent". Basically, it's your fault for signing without double checking all the information on the form! So read, research, and double check your joint Tax Returns before you sign on the dotted line!
Labels: Marriage and Taxes