There are many major life events that are exciting and even sometimes terrifying. Any way you cut the cake, anytime you are going through something life changing, it can be all encompassing. Not only do these events change your life, but they can also change your finances and your taxes as well. Mark Dicus & Company is here to talk about major life events that will not only change your life but your taxes as well.
Getting Married; Filing Jointly or Separately
It shouldn’t come as a surprise to see that this one made the list. Is there anything more life changing than choosing your partner that you plan to spend the rest of your life with? Make sure that your name has been changed on your social security card before tax season gets here. You will also need to decide how you are going to file. You can file married filing jointly and married filing separately.
How Does Having a Child Affect Taxes?
Whether you are giving birth to a child or have decided to adopt a child, it will have an impact on your taxes this year. You need to make sure they have a social security card so that you can claim your child on your taxes. This allows you to take advantage of the child tax credit given to parents. There are also deductions that you can take advantage of for childcare, adoption fees, court costs and more.
Will I Save on Taxes if I Buy a House?
It is the American dream to own your own home. When you reach this achievement, it is beyond exciting. If you have purchased your own home this year, you will likely be able to itemize your return and take advantage of deductions like real estate taxes, PMI and qualified mortgage insurance. There are also residential energy credits you can take advantage of as well.
Tax Calculation for Job Change in Same Financial Year
If you are starting a new job this year, it gives you the chance to think about your W-4 and how much you have withheld each time you get paid. Some people prefer to have their money in their pocket throughout the year rather than overpaying in taxes to get a large return at tax season. When you start a new job, you can evaluate this and make any changes that you deem necessary.
How Does the Death of a Spouse Impact Taxes?
If you have had the unthinkable happen and have lost your spouse this year, you are likely seeing every aspect of your life change. It can have an impact on how you file your taxes as well. If you qualify as a widow or widower, you may file differently.
Filing Taxes During a Divorce
Getting a divorce is complicated. It is also complicated for taxes as well as your life. If you have gotten a divorce at the end of the year, you simply move on and file separately, if you have spent part of the year married, you need the help of professional tax consultants to help you know the right way to file.