You’ve had a good run being a single crypto trader, but the day has come that you’ve happily entered new waters as a newly-wed crypto trader.
You’ve met the person of your dreams, and life has changed in more ways than just one.
The last thing on your mind has likely been how your new marriage affects your crypto tax situation.
Here Are 4 Ways Marriage Affects A Newly-Wed Crypto Trader’s Tax Situation And What You Need To Do:
1) Avoid delays on your tax refund resulting from your new name and address changes.
Your new name (or partner’s new name) through marriage must be reported to the social security administration to avoid delays on your tax refund. The name on your tax return must match your social security card; if these do not match up, it could cause delays in your tax return.
You can update your married name by filing Form SS-5, called Application for a Social Security Card. You can find this form on SSA.gov or by calling 1-800-772-1213.
If you have a new home address after your wedding day, you must also update your IRS records with Form 8822, called Change of Address on IRS.gov, and be sure to forward your mail through your local United States Post Office by visiting the change of address link at USPS.com.
2) Make sure you are in the correct tax bracket as a newly-wed crypto trader.
If you and your spouse both work, then you may move into a higher tax bracket. You may also be affected by additional medicare tax. You can find out more information by using the Tax Withholding Estimator at IRS.gov or reading more on publication 505.
Newly married couples must also complete a new Form W-4, called Earning Withholding Certificate for their employers at IRS.gov within 10 days of marriage.
3) Maximize your filing status with your newly-wed crypto trader status.
Filing jointly as a married couple could prove to be more beneficial than filing separately. Now is the time to figure out which way will suit you best and make the appropriate changes. The law says if a couple is married by December 31st, then they are considered a married couple for the entire year for tax purposes.
4) Stay clear of sneaky tax scams as a newly-wed crypto trader.
It’s important to note that the IRS will never email, phone calls, social media, or text messages. If you receive an alert in this capacity, you should beware it could be a scam. The best avenue for checking for updates if you are concerned about your tax account is logging directly into IRS.gov to see if you owe any money.
Need Crypto Tax Help?
For any questions or problems about your crypto tax return or schedule an appointment, go to DonnellyTaxLaw.com.
