Newlyweds have a lot to think about and taxes might not be on the list. However, there is good reason for a new couple to consider how the nuptials may affect their tax situation.
Here are some tips to help in the planning:

• Report changes in:
  • Name. When a name changes through marriage, it is important to report that change to the Social Security Administration. The name on a person’s tax return must match what is on file at SSA. If it doesn’t, it could delay any refund. To update information, file Form SS-5, Application for a Social Security Card. It is available on SSA.gov, by calling 800-772-1213 or at a local SSA office.
  • Address. If marriage means a change of address, the IRS and U.S. Postal Service need to know. To do that, send the IRS Form 8822, Change of Address. Notify the postal service to forward mail by going online at USPS.com or at a local post office.
• Consider changing withholding. Newly married couples must give their employers a new Form W-4, Employee's Withholding Allowance Certificate, within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the Additional Medicare Tax. Use the IRS Withholding Calculator at IRS.gov to help complete a new Form W-4. See Publication 505, Tax Withholding and Estimated Tax, for more information.
• Decide on a new filing status. Married people can choose to file their federal income taxes jointly or separately each year. While filing jointly is usually more beneficial, it’s best to figure the tax both ways to find out which works best. Remember, if a couple is married as of Dec. 31, the law says they’re married for the whole year for tax purposes.

For more information:  IRS Publication 550 Investment Income & Expenses

When you sell a ’capital asset,’ the sale usually results in a capital gain or loss.  A ‘capital asset’ includes most property you own and use for personal or investment purposes.  

1.  Capital Assets.  Capital assets include property such as your home or car.  They also include investment property such as stocks and bonds.

2.  Gains and Losses.  A capital gain or loss is the difference between your basis and the amount you get when you sell an asset.  Your basis is usually what you paid for the asset.

3.  Net Investment Income Tax.  You must include all capital gains in your income.  You may be subject to the Net Investment Income Tax.  The NIIT applies at a rate of 3.8% to certain net investment income of individuals, estates, and trusts that have income above statutory threshold amounts. 

4.  Deductible Losses.  You can deduct capital losses on the sale of investment property.  You can’t deduct losses on the sale of personal-use property.

5.  Long and Short Term.  Capital gains and losses are either long-term or short-term, depending on how long you held the property.  If you held the property for more than one year, your gain or loss is long-term.  If you held it one year or less, the gain or loss is short-term.

6.  Net Capital Gain.  If your long-term gains are more than your long-term losses, the difference between the two is a net long-term capital gain.  If your net long-term capital gain is more than your net short-term capital loss, you have a 'net capital gain.’ 

7.  Tax Rate.  The tax rates that apply to net capital gains will usually depend on your income.  For lower-income individuals, the rate may be zero percent on some or all of their net capital gains. 

8.  Limit on Losses.  If your capital losses are more than your capital gains, you can deduct the difference as a loss on your tax return.  This loss is limited to $3,000 per year, or $1,500 if you are married and file a separate return.

9.  Carryover Losses.  If your total net capital loss is more than the limit you can deduct, you can carry over the losses you are not able to deduct to next year’s tax return.  You will treat those losses as if they happened that year.

10.  Forms to File.  You must file Form 8949, Sales and Other Dispositions of Capital Assets, with your federal tax return to report your gains and losses.  You also need to file Schedule D, Capital Gains and Losses with your return.

For more information:  IRS Publication 550 Investment Income & Expenses

The term “capital asset” for tax purposes applies to almost everything you own and use for personal or investment purposes.  A capital gain or loss occurs when you sell a capital asset.

1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.  Capital assets include your home, household furnishings, and stocks and bonds that you hold as investments.

2. A capital gain or loss is the difference between your basis of an asset and the amount you receive when you sell it.  Your basis is usually what you paid for the asset.

3. You must include all capital gains in your income.

4. You may deduct capital losses on the sale of investment property.  You cannot deduct losses on the sale of personal-use property.

5. Capital gains and losses are long-term or short-term, depending on how long you hold on to the property.  If you hold the property more than one year, your capital gain or loss is long-term. If you hold it one year or less, the gain or loss is short-term.

6. If your long-term gains exceed your long-term losses, the difference between the two is a net long-term capital gain.  If your net long-term capital gain is more than your net short-term capital loss, you have a 'net capital gain.’ 

7. The tax rates that apply to net capital gains are generally lower than the tax rates that apply to other types of income.  For lower-income individuals, the rate may be 0 percent on some or all of their net capital gains.

8. If your capital losses are greater than your capital gains, you can deduct the difference between the two on your tax return. The annual limit on this deduction is $3,000, or $1,500 if you are married filing separately.

9. If your total net capital loss is more than the limit you can deduct, you can carry over the losses you are not able to deduct to next year’s tax return.  You will treat those losses as if they occurred that year.

10. Form 8949, Sales and Other Dispositions of Capital Assets, will help you calculate capital gains and losses.  You will carry over the subtotals from this form to Schedule D, Capital Gains and Losses.  If you e-file your tax return, the software will do this for you.