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IRS Tips For Recently Married Taxpayers

July 15, 2009 6:19 pm / Leave a comment

If you have recently gotten married or plan to get married in the near future, the IRS has some tips to help you avoid stress at tax time.

1) Notify the Social Security Administration – Report any name change to the Social Security Administration, so your name and SSN will match when you file your next tax return. Informing the SSA of a name change is quite simple. File a Form SS-5, Application for a Social Security card at your local SSA office. The form is available on SSA’s Web site at http://www.socialsecurity.gov/, by calling 800-772-1213 or at local offices.
2) Notify the IRS – If you have a new address you should notify the IRS by sending Form 8822, Change of Address. You may download Form 8822 from the IRS website IRS.gov or order it by calling 800–TAX–FORM (800–829–3676).

3) Notify the U.S. Postal Service – You should also notify the U.S. Postal Service when you move so it can forward any IRS correspondence.
4) Notify Your Employer – Report any name and address changes to your employer(s) to ensure receipt of your Form W-2, Wage and Tax Statement after the end of the year.
5) Check Your Withholding – If both you and your spouse work, your combined income may place you in a higher tax bracket. You can use the IRS Withholding Calculator available on IRS.gov to assist you in determining the correct amount of withholding needed for your new filing status.

6) The IRS Withholding Calculator will even provide you with a new Form W-4, Employee’s

Withholding Allowance Certificate you can print out and give it to your employer so they can withhold the correct amount from your pay.
Links:
IRS Withholding Calculator
Form 8822, Change of Address

2009 Tax Brackets

January 2, 2009 6:18 am / Leave a comment

2009 Inflation Adjustments Widen Tax Brackets and Expand Tax Benefits

WASHINGTON — For 2009, personal exemptions and standard deductions will rise and tax brackets will widen because of inflation adjustments announced today by the Internal Revenue Service.

By law, the dollar amounts for a variety of tax provisions must be revised each year to keep pace with inflation. As a result, more than three dozen tax benefits, affecting virtually every taxpayer, are being adjusted for 2009. Key changes affecting 2009 returns, filed by most taxpayers in early 2010, include the following:

The value of each personal and dependency exemption, available to most taxpayers, is $3,650, up $150 from 2008.

The new standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.

Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $67,900, up from $65,100 in 2008.

The maximum earned income tax credit for low and moderate income workers and working families with two or more children is $5,028, up from $4,824. The income limit for the credit for joint return filers with two or more children is $43,415, up from $41,646.

The annual gift exclusion rises to $13,000, up from $12,000 in 2008.

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