July Tidbits
Tips for Newlyweds
A change in your marital status can affect your taxes. Below are several tips from the IRS for newlyweds:
- It is important that the names and Social Security numbers that you put on your tax return match your Social Security Administration records. If you have changed your name, you should file Form SS-5, Application for a Social Security Card, to report your name change. You can get this form at SSA.gov, by calling 800-772-1213 or by visiting your local SSA office.
- To help insure that you receive a correct year-end Form W-2, report your name or address change to your employer.
- If you and your spouse both work, you should check the amount of federal income tax being withheld from your pay because your combined incomes may move you into a higher tax bracket. Visit IRS.gov to use their Withholding Calculator tool to help you complete a new Form W-4, Employee’s Withholding Allowance Certificate. Clients should call our office with any questions.
- If you didn’t qualify to itemize deductions before you were married, that may have changed. With combined income and expenses, you and your spouse may save money by itemizing rather than taking the standard deduction on your tax return.
- If you are married on, or as of Dec. 31, that is your marital status for the entire year for tax purposes. You and your spouse usually may choose to file your federal income tax return either jointly or separately in any given year. You may want to figure the tax both ways to determine which filing status results in the lowest tax. In most cases, it’s beneficial to file jointly.
Deducting Job Search Expenses
Looking for a new job in your same line of work? You may be able to claim a tax deduction for some of your job hunting expenses. Below are seven things the IRS wants you to know about deducting these costs:
1. Your expenses must be for a job search in your current occupation. You may not deduct expenses related to a search for a job in a new occupation. If your employer or another party reimburses you for an expense, you may not deduct it.
2. If you incur employment and job placement agency fees while looking for a job, you can deduct those on your taxes.
3. You can deduct the cost of copies and postage to send your résumé to prospective employers.
4. If you travel to look for a new job, you may be able to deduct your travel expenses. However, you can only deduct them if the trip is primarily to look for a new job.
5. You can not deduct job search expenses if there was a substantial break in time between the end of your last job and the time you began looking for a new one.
6. You can not deduct job search expenses if you are looking for a job for the first time.
7. Job search expenses are usually claimed as a miscellaneous itemized deduction. You can deduct only the amount of your total miscellaneous deductions that exceed two percent of your adjusted gross income.
For more information is available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).
