Updating your status from single to married may bring about some unanticipated changes, including changes relating to your taxes. While wedding planners don’t typically use an IRS checklist, here are a few things to keep in mind when filing your first tax return as a married couple. As with any tax issue, contact your tax professional to help you navigate your own unique situation. Notify the Social Security Administration (SSA)

Many factors affect eligibility for federal financial aid; therefore, all students should apply for financial aid every year even if they think they do not otherwise qualify.  FAFSA. The Free Application for Federal Student Aid (FAFSA) is the first step in the financial aid process. Students use the FAFSA to apply for federal student aid, such as grants, loans, and work-study. The FAFSA must be submitted for each year the student wants financial aid.

Who Needs a Will?  Include persons who are not heirs. Wills are needed to provide for a person who is not an heir under state law, such as unmarried partners, stepchildren, friends, charities, and in-laws.  Exclude an heir. Heirs are the persons who inherit an estate under state law in the absence of a will. A will is needed to prevent an heir from inheriting probate assets.  Minors and disabled adults.

An employee nearing retirement may face a dilemma when it comes to choosing his or her pension. Pension options from a defined benefit retirement plan generally include a lifetime payment with no survivor benefit, a joint and 50% survivor payment, or a joint and 100% survivor payment. The joint and survivor benefits are reduced amounts from the lifetime payment option. Predicament If the employee selects the lifetime payment and then dies before the surviving spouse, no monthly pension will be left for the spouse.

Personal Financial Planning Budgeting Steps to managing income and expenses include:  Be realistic when making a budget.  Identify monthly outflows as living expenses, savings, and discretionary.  Estimate low for income.  Estimate high for expenses.  Track every expense.  Track income and expenses monthly and review periodically.  Save for large purchases.  Save first.  Budget for fun. Read more: Financial Planning Guide 2021

Tax Planning Strategy One strategy to generate income from retirement accounts if you are under age 591⁄2 is to take periodic distributions from those accounts. If structured properly, the 10% additional tax will not be assessed on the distributions. You can take distributions from various retirement accounts such as 401(k) plans, 403(b) plans, and IRAs. Substantially Equal Periodic Payments (SEPP) The Internal Revenue Code allows you to take withdrawals from retirement accounts without incurring the 10% penalty.

Exclusion Rules Interest from qualified savings bonds redeemed by the taxpayer can be excluded from income if:  The taxpayer paid qualified education expenses during the year for the taxpayer, spouse, or a dependent claimed on the taxpayer’s return.  Filing status is not Married Filing Separate. If proceeds from the redemption (interest and principal) are more than adjusted qualified education expenses, only a percentage of the interest is excludable.

View Moving Out Worksheet 2021