4 Changes In Your Life That Affect Your Taxes

Taxes are never the same for our entire life. Many events occur in life that affect our tax liability. Buying a new house or having a child, these types of events can significantly change your tax problem. If you are Income Tax Preparation Denver, here are 5 events in your life that you need to keep in mind:

Buying a Property or Selling a Property

If you have just purchased a property, you are eligible for various tax benefits. In case you are selling your property you can avoid a lot of taxes, if filing jointly with your spouse. Taxes on real estate, home mortgage insurance, and private mortgage insurance are a few deductions that are available to you.

Getting Married

You don’t get married just to save on your taxes, but after marriage, if you file joint taxes, you do get tax benefits. You will get a lower tax rate and higher deductions during tax filing. But there are also a few cases where your taxes can increase. If you have had your name changed after marriage, make sure you change your name on your social security as well as your bank or other licenses. Your taxes are affected if there is a mismatch between your tax return and Social Security Administration records. This can delay a tax refund.

Having a Child

Having a change in your lifestyle, or having a new dependent in your family, can significantly affect your taxes. A few tax breaks you might get – Child Tax Credit, Education Credit, Child, and Dependent Care Credit. You can get Adoption Tax Credit, if you have adopted a child. People who decide to adopt can get adoption fees, costs towards the court, etc. Single parents can claim benefits as head of the household.

Death Of Your Spouse

The death of a partner is not something you would want to think about or plan ahead. But that is a question you will have to address, at some point. ‘If my spouse passes away, what happens to my taxes?’ You are eligible for joint returns for up to two years in the case of the death of your other half. The size of the assets may result in the filing of an estate tax return as well. 

We at Fast Action Taxes are one of the best Denver Tax Accounting Firm and can file and advise both individuals as well as businesses.