If you’ve recently experienced a big change in your life, such as getting married, buying your
first home or having your first baby, you might not know that it can have a positive impact upon
your taxes. While you might be caught up in the newness of your situation (and nobody could
blame you for that!), your taxes might be furthest from your mind, but it’s important to know
that recent life changes could save you money when it comes to tax time.
Here are 3 of the most common life changing events that many individuals experience at least
once, along with how they might prove fruitful when it comes to filing your taxes:
Getting hitched:
Once you’re married, you and your new partner can file your taxes jointly, and there is every
chance that you may see lower tax liability than when you were single. Often referred to as a
‘marriage bonus’, federal tax rates are lower for couples who file jointly, compared to those rates
applicable for single filers, and bigger tax deductions and credits may also be applicable for
married couples.
Stepping onto the property ladder:
While buying a new home is often a huge financial outgoing for many, it can get you some of the
largest tax savings, too. Not only can you deduct your home mortgage interest and property
taxes, but you can also deduct the points that you paid to secure the loan.
Adding a new member to your family:
Having a baby can mean that you’re eligible for new tax deductions and credits, such as the child
tax credit and childcare credit. So, while there are many costs associated with adding a new
member to your family, the tax savings that you may be entitled to, could help you manage your
finances better.
Depending upon the type of life change you’ve recently experienced, your emotions may be
all over the place, and taxes could easily be the last thing on your mind. However, while this
is understandable, it’s important to think carefully about whether you can make any
savings on your taxes due to your new personal circumstances. If you’re unsure whether
you might qualify for tax savings, or simply want to discuss what the IRS need to know
about a recent life changing event, reach out to an experienced, tax professional who can
help guide you through any new processes that might apply to you, and advise you as to
any relevant tax savings.
Target keywords & URLs:
Filing your taxes – https://heyerinc.com/
Tax professional – https://heyerinc.com/