Talking About Tax Services For Small Business Owners

Five Life Events That You Should Discuss With Your Tax Preparer

If you are getting documents ready for your tax preparer, it is a good idea to also do a mental checklist of everything that has changed in your life in the past year. Major and even smaller events can have an effect on your taxes and filing status, so it is a good idea to discuss all of these possible changes with your tax preparer before they get to work. Here are a few life events that can affect your taxes that you should bring up with your tax advisor when filing.

1. If You've had Changes in Your Family Dynamic

Major changes in your family's structure can bring with them tax implications. Getting married will give you the opportunity to file jointly, and can lower your tax rates and grant you more exemptions. If you go through a divorce, be sure to review your W4 status with your tax preparer for advice moving forward. If you have had a baby in this past year, you can add them as an additional dependant, lowering your overall taxes. You may also be eligible for tax credits down the line for education and earned income.

2. If You are Now Shouldering Education Costs

If you have started school in the past year, there are plenty of tax incentives that you should make sure you are taking advantage of. There are general expense offsets a tax advisor might recommend, and you might even be able to write off costs for certifications you have earned. If you are paying off student loans, the interest paid is taxable as well. Documentation should be brought along when you're ready for tax preparation services.

3. If You have Bought or Sold a Home

If you have a mortgage, you probably know that the interest is tax deductable, much like student loans. There are other deductions that your tax preparer might suggest as well as a homeowner. If you are selling your home, there can be incentives to file jointly with your spouse, as well as recommended timelines to buy a home within a certain period of time to avoid further taxes.

4. If You've Changed Jobs

Changing jobs can be a great switch, but can have ramifications for your taxes. A raise or promotion might bump you into a different tax bracket, which is something you can discuss with your tax advisor. If you have started your own business, you might seek out advice when it comes to keeping receipts, possible writeoffs, and keeping track of personal income.

5. If You've Received an Inheritance

While receiving an inheritance can be a great thing for your family, monetary inheritance, property inheritance, and IRA inheritance all can have different tax ramifications. Any inheritance income or property acquired should be closely reviewed with your tax advisor.

While there will always be life changing events that can affect your taxes, getting ahead of these and being strategic when filing will help you tremendously at tax time. Don't be shy about asking your tax preparer for advice for the upcoming year and down the line when it comes to your personal tax goals.