Life is filled with momentous occasions and milestones, from getting engaged to growing your family. While these events are meaningful on an emotional level, it’s important to understand how certain occasions impact taxes. Here are a few milestones to be aware of so that you can handle tax preparations accordingly. 

Which Occasions Impact Tax Preparation?

1. Purchasing a House

Buying a house isn’t just beneficial because it gives you a piece of property to call your own. This investment also makes you eligible for a variety of money-saving deductions. For example, after becoming a homeowner, you can adjust tax preparations to receive a credit for any interest paid associated with a home equity loan or mortgage.

2. Changes to Marital Status

After getting married, you’ll have to update your filing status on your tax returns. Some newlyweds opt to do their tax preparations jointly, while others choose to file as married but filing separately.

Both statuses offer their own benefits and drawbacks, which can be weighed with an accountant to determine the best option. If you become a widow or widower, you’ll still be required to file a final return in both you and your spouse’s name, including estate taxes.

3. Growing Your Family

Having a bundle of joy is beautiful for your family and taxes. After having a baby, you’ll become eligible for a tax credit. On average, you’ll receive $2,000 for each child. These credits are valid until they reach legal age.

If you recently underwent a major milestone and are wondering how it will impact tax preparations, contact Sharrard, McGee & Co., PA, in High Point and Greensboro, NC. With almost 50 years of experience serving residents throughout the Triad Area, they have the skills, expertise, and insight needed to keep your finances in order. Visit them online, call (336) 272-9777 for their Greensboro location, or (336) 884-0410 in High Point to schedule a consultation.