Tax Deductions and Credits 12 Ways to Save on Taxes Through Life’s Transitions Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Ginita Wall Published Oct 19, 2023 - [Updated Sep 17, 2024] 3 min read Taxes are part of almost everything we do in life. There are, however, ways to save on your taxes through life’s transitions. Here are 12 tax tips to help you save through major life events: Table of Contents EducationThe Working WorldFamily Life Education Deduct your tuition. Education expenses may be tax deductible if they maintain or improve skills required in your employment. 2. Invest in a 529 plan to save for your children’s education. You won’t get a tax deduction, but there won’t be a tax on the earnings and growth of those funds if they are used for education. 3. Tally the cost of books and necessary supplies purchased for your education. Expenses directly related to your college education may be tax-deductible and may put more money back in your pocket. The Working World 4. Invest in 401(k)s and IRAs as soon as possible. Small contributions growing from an early age are more valuable than large contributions made years later. 5. Learn about your company’s fringe benefits, such as tuition assistance plans, free employee counseling, mass transit commuting assistance, Health Savings Accounts, and other tax-free perks. 6. Get next year’s refund now by adjusting your withholding so that you break even with the IRS at the end of the year. If you need help saving, have money automatically deposited to savings from each paycheck. 7. Only borrow from your 401(k) in an emergency. The interest you pay on the loan won’t be tax deductible, and you will lose the capital appreciation you’d enjoy if you’d left it invested in the plan. Family Life 8. Put tax-free money into your employer’s dependent care plan. Though this will reduce your child and dependent care credit, it’s still a good financial move for most taxpayers. 9. Claim the Child Tax Credit on your taxes. The Child Tax Credit is up to $2,000 for each dependent child under 17 and is available if your income is up to $200,000 single or head of household (up to $400,000 if you are married filing jointly) TurboTax will ask you questions about your dependents and give you the deductions and credits related to your dependents that you’re eligible for or you can fully hand your taxes over to a TurboTax Live tax expert who can do your taxes from start to finish. 10. Gather your receipts for dependent care. You may be able to claim the Child and Dependent Care Credit even if you don’t work, if your spouse works and you are a full-time student or disabled. Don’t overlook expenses eligible for the Child and Dependent Care Credit such as nursery school, after school programs, and daycare. 11. File jointly. Married couples filing separately are barred from many tax deductions and credits, so unless you are trying to distance yourself from a tax-evading spouse or a soon-to-be-ex, a joint tax return is your best move. TurboTax helps you select the filing status that you are eligible for based on your entries. 12. Take advantage of the Other Dependent Credit for non-child dependents. If you take care of a non-child dependent like a parent, grandparent or even a friend, you may be able to claim the Other Dependent Credit that is $500 per eligible dependent. Don’t worry about knowing all of these tax rules. You can meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind. Previous Post End of Year Retirement Tips Next Post New Side Job: What Do You Need Before Tax Time? Written by Ginita Wall More from Ginita Wall 293 responses to “12 Ways to Save on Taxes Through Life’s Transitions” « Older Comments Newer Comments » I draw SSI. $710.00 per month. I pay $550.00 per month rent which includes everything. I get food stamps for myself. Also I have medical expenses and driving back and forth to the doctors which most are 22 miles from me. should I file or not? Thank You Reply Hi Brenda, Unless you have other taxable income from sources like pensions, employment, interest, your social security benefits would not be taxable so you don’t need to file your taxes. Here is more information for you https://blog.turbotax.intuit.com/2012/02/13/how-social-security-income-is-taxed/ Thank you, Lisa Greene-Lewis Reply I posed the following question previously with no response. Mary F. said: on January 22, 2014 at 10:34 am Two part question: 1. I attended college in 2013, can I claim mileage as an education expense? 2. My spouse was laid off in 2013 and we accepted jobs over 100 miles from our residence. We had to pay for a mortgage and an apartment during that time.Can the cost of the 6 month apartment lease, while waiting for our home to sell, be deducted? I have two children living at home both claim them selfs. We pay tuition on one and medical supplies for diabetes for the other can we deduct any of these supplies or tuitions ages are 24 and 27 Unless you live in Michigan, where you would probably qualify for a rent credit and possibly a Home Heating Credit. Reply I just got married on Jan 25, 2014. When I file my taxes should I file single or married? And my husband has been in prison from 2009-march of 2013. He worked while in prison. Can he file taxes on that? Reply Melissa, If you were not married on December 31, 2013, you will file your return as single (or head of household, if you have a dependent child). Your husband needs to file his own tax return, claiming the income he earned in 2013. If his income was less than $10,000 he does not need to file a return. For 2014, you and your husband will file a joint tax return, or you may choose to file two separate returns using the filing status of married filing separately. Filing separately usually results in a higher total tax, but you can use TurboTax TaxCaster to help you decide what is the best status for you. Here is the link to TurboTax TaxCaster https://turbotax.intuit.com/tax-tools/ Mary Ellen Reply I posted the following questions previously with no response: Mary F. said: on January 22, 2014 at 10:34 am Two part question: 1. I attended college in 2013, can I claim mileage as an education expense? 2. My spouse was laid off in 2013 and we accepted jobs over 100 miles from our residence. We had to pay for a mortgage and an apartment during that time.Can the cost of the 6 month apartment lease, while waiting for our home to sell, be deducted? My spouse taxes are going to be garnish due to student loans default should I file married but seperate to avoid my taxes being taken Reply Miranda, Married filing separately will protect your refund from your husband’s tax liability, but it may also reduce your refund. You can use TurboTax TaxCaster to see what will work best. You can also try both scenarios in TurboTax Online. Here is the link to TurboTax TaxCaster https://turbotax.intuit.com/tax-tools/ You can also consider filing as an injured spouse. The IRS has information about the injured spouse program here – http://www.irs.gov/uac/Seven-Facts-about-Injured-Spouse-Relief Mary Ellen Reply I pay my mother $400 a month to take care of my infant son, she is not license. can I still deduct child care expenses and claim eic? Reply Hi, In order to get the child and dependent care credit you will have to list your mother’s social security number and she will have to claim the income on her taxes. Regarding EITC, you may qualify if you meet the income limitations. Please see our latest blog post regarding EITC and income limitations https://blog.turbotax.intuit.com/2014/01/31/eitc-awareness-day-common-questions-about-earned-income-tax-credit-answered/ Thank you, Lisa Greene-Lewis Reply I just got married this year 2013 and my husband has a daughter and i have a son, we were both single parents. how should we file this year; jointly or married seperately? Or should wait till next year to file jointly. what is the best advantage for us? Reply Hi Michael, You have to file as a married couple the year you are married. Whether you file as married filing jointly or separately will depend on your income and dedcutions. You can use TurboTax TaxCaster to get an estimate of whether filing jointly or separately is better for you. You can also try both scenarios in TurboTax Online. Here is the link to TurboTax TaxCaster https://turbotax.intuit.com/tax-tools/ Thank you, Lisa Greene-Lewis Reply I am in a chapter13 payback program . Got married after filed . I will owe 600 in fed taxes wife will get back 1100 . My return will go to trustee for him to decide if I can retain any monies back. Should I file married filing separate to keep the refund coming back to her , then pay my liability? Reply Tom, Married filing separately will protect your wife’s refund from your tax liability, but it may also reduce her refund. You can use TurboTax TaxCaster to see what will work best. You can also try both scenarios in TurboTax Online. Here is the link to TurboTax TaxCaster https://turbotax.intuit.com/tax-tools/ She can also consider filing as an injured spouse. The IRS has information about the injured spouse program here – http://www.irs.gov/uac/Seven-Facts-about-Injured-Spouse-Relief Mary Ellen Reply I had no income in 2013, can my daughter claim me on her taxes? Reply Kea, If your daughter provided more than half of your support, you should qualify as her dependent. See our blog post about dependents for more information. https://blog.turbotax.intuit.com/2013/11/22/who-qualifies-as-a-dependent-on-your-tax-return/ Mary Ellen Reply comment already sent Reply Can my wife and I deduct a newly install Heat/air pump installed in our home in 2013? Reply I’m paying 560 a year on my student loan. How do I claim this money and can I get any thing back? Reply Angela, If you are paying interest on your school loan, you will be able to deduct that from your income. TurboTax will help you with this in the Education section of Deductions. Mary Ellen Reply « Older Comments Newer Comments » Leave a ReplyCancel reply Browse Related Articles Tax Planning TurboTax Life Events Calculator Helps Estimate Tax Savings TurboTax News Had a Life Change? 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I draw SSI. $710.00 per month. I pay $550.00 per month rent which includes everything. I get food stamps for myself. Also I have medical expenses and driving back and forth to the doctors which most are 22 miles from me. should I file or not? Thank You Reply
Hi Brenda, Unless you have other taxable income from sources like pensions, employment, interest, your social security benefits would not be taxable so you don’t need to file your taxes. Here is more information for you https://blog.turbotax.intuit.com/2012/02/13/how-social-security-income-is-taxed/ Thank you, Lisa Greene-Lewis Reply
I posed the following question previously with no response. Mary F. said: on January 22, 2014 at 10:34 am Two part question: 1. I attended college in 2013, can I claim mileage as an education expense? 2. My spouse was laid off in 2013 and we accepted jobs over 100 miles from our residence. We had to pay for a mortgage and an apartment during that time.Can the cost of the 6 month apartment lease, while waiting for our home to sell, be deducted?
I have two children living at home both claim them selfs. We pay tuition on one and medical supplies for diabetes for the other can we deduct any of these supplies or tuitions ages are 24 and 27
Unless you live in Michigan, where you would probably qualify for a rent credit and possibly a Home Heating Credit. Reply
I just got married on Jan 25, 2014. When I file my taxes should I file single or married? And my husband has been in prison from 2009-march of 2013. He worked while in prison. Can he file taxes on that? Reply
Melissa, If you were not married on December 31, 2013, you will file your return as single (or head of household, if you have a dependent child). Your husband needs to file his own tax return, claiming the income he earned in 2013. If his income was less than $10,000 he does not need to file a return. For 2014, you and your husband will file a joint tax return, or you may choose to file two separate returns using the filing status of married filing separately. Filing separately usually results in a higher total tax, but you can use TurboTax TaxCaster to help you decide what is the best status for you. Here is the link to TurboTax TaxCaster https://turbotax.intuit.com/tax-tools/ Mary Ellen Reply
I posted the following questions previously with no response: Mary F. said: on January 22, 2014 at 10:34 am Two part question: 1. I attended college in 2013, can I claim mileage as an education expense? 2. My spouse was laid off in 2013 and we accepted jobs over 100 miles from our residence. We had to pay for a mortgage and an apartment during that time.Can the cost of the 6 month apartment lease, while waiting for our home to sell, be deducted?
My spouse taxes are going to be garnish due to student loans default should I file married but seperate to avoid my taxes being taken Reply
Miranda, Married filing separately will protect your refund from your husband’s tax liability, but it may also reduce your refund. You can use TurboTax TaxCaster to see what will work best. You can also try both scenarios in TurboTax Online. Here is the link to TurboTax TaxCaster https://turbotax.intuit.com/tax-tools/ You can also consider filing as an injured spouse. The IRS has information about the injured spouse program here – http://www.irs.gov/uac/Seven-Facts-about-Injured-Spouse-Relief Mary Ellen Reply
I pay my mother $400 a month to take care of my infant son, she is not license. can I still deduct child care expenses and claim eic? Reply
Hi, In order to get the child and dependent care credit you will have to list your mother’s social security number and she will have to claim the income on her taxes. Regarding EITC, you may qualify if you meet the income limitations. Please see our latest blog post regarding EITC and income limitations https://blog.turbotax.intuit.com/2014/01/31/eitc-awareness-day-common-questions-about-earned-income-tax-credit-answered/ Thank you, Lisa Greene-Lewis Reply
I just got married this year 2013 and my husband has a daughter and i have a son, we were both single parents. how should we file this year; jointly or married seperately? Or should wait till next year to file jointly. what is the best advantage for us? Reply
Hi Michael, You have to file as a married couple the year you are married. Whether you file as married filing jointly or separately will depend on your income and dedcutions. You can use TurboTax TaxCaster to get an estimate of whether filing jointly or separately is better for you. You can also try both scenarios in TurboTax Online. Here is the link to TurboTax TaxCaster https://turbotax.intuit.com/tax-tools/ Thank you, Lisa Greene-Lewis Reply
I am in a chapter13 payback program . Got married after filed . I will owe 600 in fed taxes wife will get back 1100 . My return will go to trustee for him to decide if I can retain any monies back. Should I file married filing separate to keep the refund coming back to her , then pay my liability? Reply
Tom, Married filing separately will protect your wife’s refund from your tax liability, but it may also reduce her refund. You can use TurboTax TaxCaster to see what will work best. You can also try both scenarios in TurboTax Online. Here is the link to TurboTax TaxCaster https://turbotax.intuit.com/tax-tools/ She can also consider filing as an injured spouse. The IRS has information about the injured spouse program here – http://www.irs.gov/uac/Seven-Facts-about-Injured-Spouse-Relief Mary Ellen Reply
Kea, If your daughter provided more than half of your support, you should qualify as her dependent. See our blog post about dependents for more information. https://blog.turbotax.intuit.com/2013/11/22/who-qualifies-as-a-dependent-on-your-tax-return/ Mary Ellen Reply
I’m paying 560 a year on my student loan. How do I claim this money and can I get any thing back? Reply
Angela, If you are paying interest on your school loan, you will be able to deduct that from your income. TurboTax will help you with this in the Education section of Deductions. Mary Ellen Reply