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Major Life Changes that Affect Taxes for Your Accounting in Denver

August 2, 2017

Did you know that certain life changing events in your life may affect your taxes and how you will need to handle your accounting in Denver? By working with a local accountant to help you with your taxes, they will help walk you through the specifics on all life changes. However, it is always best to be aware of the various areas so you know to expect changes when tax season comes around. From getting married and purchasing a new home, to a new baby or retirement, these are a few of the top major changes that will impact your taxes.

Getting Married

Upon getting married, your filing status for your taxes will change. More specifically, you will change from filing as single to either married filing jointly or married filing separately. In the IRS’ explanation on how getting married affects your taxes, when filing together, you will combine your income and deductions. The two of you are both responsible for the items you report on the taxes. For filing separately, it is a good conversation to have with your premier tax specialist to see if you fall in a category where this would benefit you. It’s primarily used if one spouse has a negative history with taxes to keep everything separate. While there are some instances that could save you money, in most cases, you both will pay more.

Purchasing a Home

When you buy a new home, you will be excited to learn that there a few benefits that come with this new life change. How? You are able to make a few additional deductions. For starters, you are able to deduct the interest that is charged from your mortgage. Next, you are also able to deduct your area’s property taxes that you have paid. In addition, if you make energy efficient additions to the home, discuss with your accountant how you could potentially take advantage of the energy tax credit that can be up to $500.

A New Baby

After you welcome a new child to your family, you will be able to claim dependents on your taxes. As a parent, you will be able to take advantage of the Child Tax Credit. In most cases, this will lead to $1,000 in savings. In addition, depending on your income and filing status, you may qualify for the Earned Income Tax Credit. As your child or children grow, you can also claim their medical expenses if they are over 10 percent of your adjusted gross income. There are also childcare tax breaks if you send your child to a daycare that you can discuss with your accountant.

When it comes to handling your life changes for your taxes, you need a quality, go-to specialist that you can trust. You can rest assured that with Bloch, Rothman and Associates, we’ll help you every step of the way to maximize your return. In addition to these tips, be sure to read tax tips for retirees from an accountant in Denver. Whenever you have a life event that may change your taxes, be sure to call us at 303-321-7160.