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The biggest events of our lives are rarely self-contained. Their effects spread out to other areas we might not have considered—like tax return preparation. If 2019 is notable for one of the following reasons, here are some ways your filings to the IRS might have to change, accordingly.

What Milestones Might Impact Your Returns?

1. Marriage

If you’ve recently tied the knot, congratulations! You now have the choice between filing jointly with your new spouse or keeping matters separate. Most choose the former, as marriage entitles couples to extra deductions; however, for those whose combined income places them in a higher tax bracket, it can be wise to maintain the status quo.

2. Divorce

tax return preparationIf you’re recently divorced with a child, you and your ex will have to decide who will claim him or her as a dependent. While they might split their time between your houses, only one of you will be entitled to do so—otherwise, it might trigger an IRS audit. Furthermore, if you decide to return to your maiden name, the government needs to be informed of this as well.

3. Starting a Side Business

Any side businesses you have that earn money must be reported to the IRS. This income won’t be reported using a W-2 though; instead, you must fill out a 1099. However, in exchange for having to pay taxes on these profits, a tax return preparation professional can help you claim deductions based on work expenses. 

 

If you have questions about 1099s, filing status, or tax credits, Joe Heard, CPA has answers. With more than 15 years spent helping residents of Checotah, OK, with tax return preparation, he will help you claim every applicable deduction to reduce your burden or maximize your return. Visit the website to learn more about his services. Then call (918) 473-1492 to ask how an upcoming event might affect your filing status.

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