Is It Time To Contact Your CPA?
H O W M A J O R L I F E E V E N T S C A N I M PA C T Y O U R TA X S I T U AT I O N
Are you getting married? Having a baby? Buying a new house?
Not only are these milestones emotional, but major life events almost always have a
big impact on your tax situation. Whether it’s how you file, your benefits, or the tax
bill you’ll receive, these changes need to be addressed. That’s why it’s essential to
make year-round tax planning a priority.
L I F E C O M E S AT Y O U FA S T
The only person who truly has the expertise and training to properly handle your
taxes is your CPA. But what life events do they need to know about? The following
list will help point you in the right direction:
MARRIAGE
Now that you’re married, your combined wages will likely cause your family income
to increase, which means you might move into a higher tax bracket. Don’t forget to
reflect this change in your tax planning strategy.
After you say “I do,” you’ll need to change your filing status to either married filing
jointly or married filing separately. Your newlywed status also means that you might be
able to claim a new tax exemption and possibly adjust your paycheck withholding.
And if you plan to change your name, don’t forget to keep the Social Security
Administration in the loop.
DIVORCE
There’s a new divorce law on the books, which means new tax implications.
Similar to the tax filing status change that occurred when you got married,
you’ll need to revert your status back to either single or head-of-household.
Minimize the baggage that accompanies divorce by making sure your de-
pendents, tax credits, overpayments and deductions are accurately divided
between you and your ex.
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By Alan Hill, CPA, principal,
[email protected] (Mentor office)
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