There are certain milestones people look forward to hitting—whether that’s getting married, owning a home, or moving states or careers. These changes then have ripple effects for many other areas of their life. Among the aspects that may be different is how you go about tax preparation to ensure there are no unwanted surprises. The guide below looks closer at the adjustments you might have to make.

Do You Have Any of These Changes Planned for This Year?

1. Switching Residences

According to studies, the average American moves 11.4 times. If they upgrade from an apartment to owning a house, they can then claim deductions against their property taxes. Meanwhile, those who move across state lines for work will be subject to both state’s income tax laws. Luckily, Texas, as well as six other states, does not impose this kind of tax.

2. Increase in Money

The amount of money you have plays a significant role in the amount of taxes owed. So, for example, if you were to accept a promotion that bumped you up into the next tax bracket, you would start paying more on the state and federal level than you did before. Other taxes may be imposed on those who win the lottery or receive a large sum of money through an inheritance. 

3. Change in Marital Status

Getting married in 2019? You will now have the choice between filing jointly or separately. While the former comes with certain tax breaks that many couples find beneficial, marriage, like a promotion, could push your reported income into a new tax bracket, where you will have to pay more. Therefore, it’s worth talking to a tax preparation professional about which course of action is right for your family to maximize returns and minimize liabilities.

For any questions regarding tax preparation, turn to Lee & Smith, PLLC, serving the Texarkana area. With almost three decades of experience, they have the accounting and legal insight to provide clear guidance when it comes to your returns. Additionally, they perform bookkeeping and can offer IRS representation. Visit their website to learn more about their offerings, or call (908) 832-4339 to schedule a consultation today.

For full disclosure and information on this topic, contact them.