Get name changes on record
Have a new married name? Inform Social Security and get a new card by completing and submitting Form SS-5, which you can download at ssa.gov. Otherwise, the IRS computers won’t recognize your new name, which will cause confusion when you file.
Alert the IRS of a move
Recently relocated? Fill out Form 8822 at irs.gov. This will ensure that you receive all necessary IRS labeled correspondence and, more important, your refund (every year, thousands of refund checks are returned to the IRS labeled “undeliverable” because the recipient moved). Also, let your employers know about any name or address changes so you’ll receive accurate W-2s.
Do eco-renovations
Going green will pay off! You can get tax credits for energy-efficient home improvements, such as windows, doors, roofs, insulation, HVAC, and non-solar water heaters. This has just been put into effect; improvements made in the coming year will qualify on your 2009 return. Any improvements made during 2008 aren't eligible.
Check out this Nestie couple’s eco-friendly home chockfull of tax credits!
Check your withholding
Recently hitched couples should change their W-4 forms at work from “single” to “married,” since this counts as an exemption and impacts how much employers withhold. Use the “IRS Withholding Calculator” at irs.gov and enter information you have from from pay stubs and last year’s tax forms.
Decide how you’ll file
Many married couples assume that they have to file for taxes jointly, but you can also file separately. Plus, in certain scenarios, filing separately will reduce your tax bill. So don’t be shy about asking your accountant to crunch the numbers both ways.
Add up deductions
To figure out if you should take the standard or itemized deduction, add up everything you might itemize on your return, including the interest you pay on your student loans, home mortgage, property tax, plus state and local taxes. If your total exceeds $10,900 (the standard deduction for married couples in 2008), then itemize your deductions to receive tax benefits. If you’re close to $10,900 and want to push your deductions over the top, try our next tip.
Make a donation
Being a little more generous with your cash can actually help tip tax odds in your favor. To be able to start reaping the benefits of charity tax write-offs, you’ll need to sign those checks before year’s end.
Nestperts: Jill Gianola, author of The Young Couple’s Guide to Growing Rich Together; Brett Graff, The Home Economist™ and TheNest.com money expert.
-- Judy Dutton
Dec 11, 2008
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