If you are among those getting married, we have tax tips to consider in your new tax life together
What you need to know:
The IRS requires married couples to give their employers a new W-4 Employee’s Allowance form within 10 days of your marriage.
Notify the government of any name and address change. Tell Social Security of any name change since state and federal tax returns are tied to your Social Security number.
If both spouses take a qualifying premarital counseling course, you can claim a $50 nonrefundable Income Tax credit on your state return.
In 2022, South Carolina hosted almost 36,000 weddings, according to The Wedding Report, a national wedding research firm. That's an increase of 22 percent over weddings held in 2021.
If you are among those getting married, the South Carolina Department of Revenue (SCDOR) offers these tax tips to consider in your new tax life together:
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Consider premarital counseling. If both spouses complete a qualifying premarital counseling course within 12 months of getting your marriage license, you can claim a $50 nonrefundable credit on your state Individual Income Tax Return ($25 if only one of you completes the course). Visit dor.sc.gov/tax-credits for more information.
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Adjust your W-4, the form that regulates the amount of tax withheld from your paycheck. You may need to have more or less tax withheld. The idea is not to withhold too little and be surprised next year with an unexpected tax bill, or to withhold too much money that could be used for other expenses throughout the year. According to the IRS, newly married couples must give their employers a new W-4, Employee's Withholding Allowance within 10 days.
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Notify the government of name and address changes. Since state and federal tax returns are tied to Social Security Numbers, notify the Social Security Administration of any new name using Form SS-5. You'll need to notify the US Postal Service, the IRS (using form 8822), and the SCDOR (using MyDORWAY or the SC8822I) of any address changes.
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Decide if you'll file next year's Income Tax returns as married filing jointly or married filing separately. Choosing the right filing status can save you money.
- Filing jointly allows both spouses to potentially claim the Earned Income Tax Credit, student loan interest, child tax credits, and a larger deduction. But it can also put you on the hook for your spouse's tax liabilities, if they have any.
- With separate returns, each spouse is only responsible for their return and their tax liability. If you file separately, you must both claim the standard deduction or itemize. One of you cannot itemize while the other claims the standard deduction.
- Consider discussing the right filing status for you with a certified tax professional.
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Select the right form to file your returns. For instance, a couple may have enough deductions jointly to itemize but may not have enough when filing separately.
