With tax season just around the corner, now is the time to reflect on the past year and major life changes. Some events will have tax implications that you need to be aware of to make informed decisions when it comes time to file. As such, it’s important to carefully consider your current situation and get professional tax return help to ensure everything is reported accurately. Here are a few circumstances that can make your tax filing more complicated than in previous years. 

How Certain Life Events Affect Your Taxes

1. Getting Married 

After you walk down the aisle, you and your spouse can file taxes jointly or separately. There are pros and cons to both types of filing statuses, so it’s best to seek tax return help to determine which will benefit you the most. You’ll need to assess your tax bracket, as well as your qualifications for new credits and deductions. Additionally, changing your last name can create issues if the name on your return doesn’t match the Social Security Administration’s records.

2. Buying a House 

Tax deductions are one of the many perks that come with buying a home. In most cases, homeowners are allowed to claim mortgage interest, property taxes, and private mortgage insurance premiums to lower their taxes. While you may have always taken the standard deduction when filing in the past, itemizing could provide you with a larger refund. 

3. Retiring  

Though you’re no longer earning a paycheck, retirement doesn’t make you exempt from paying taxes. If you’ve been contributing to a tax-deferred retirement account, the distributions you receive will be considered taxable income. Get tax return help to strategize ways to reduce your liability on the amount you withdraw.

If you’ve recently gone through any significant life changes, turn to Corey C. Davis, CPA in Kerrville, TX, for expert tax return help. Offering both accounting and legal experience, Davis and his team can advise you on all the latest tax laws and effective ways to minimize your IRS obligations. For more than a decade, the firm has provided residents in the area with invaluable financial guidance and tax assistance. Call (830) 257-8800 to set up an appointment, or go online to learn more about his services.