Did you get married this year? Purchase your dream home? Have a baby? Or have another life change? Changes experienced in your life can bring about many questions and uncertainties. Although you may have questions about how these affect your tax return, one thing is certain, life changing events can save money on your taxes.
Don’t worry about knowing all the tax laws TurboTax has you covered. If you have tax questions you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent with an average 15 years’ experience to get your tax questions answered from the comfort of your home. Whether it’s personal or business taxes, including complex situations, TurboTax Live has you covered. Our expansive network of trusted CPAs and EAs are available in Spanish and English to help you navigate through your life changes and they can also review, sign, and file your taxes.
These are just a few life changes that can put more money in your pocket at tax time:
Getting married. Did you finally marry your bae this year or are you considering it? Weddings can cost a bundle and really set you back, but one perk of getting married is you could now see some bigger tax benefits than when you were single. Now that you tied the knot, you and your loved one can file taxes as married filing jointly and may see lower tax liability than when you were single. Because there are lower federal tax rates for couples who file married filing jointly compared to filing as single.
You will also see bigger tax deductions and credits now that you can file as married filing jointly like, a bigger standard deduction of $24,000 for married filing jointly, and an Earned Income Tax Credit of up to $6,431 with three kids if you are married filing jointly. Even if you got married on December 31 of the year, you are considered married all year and can reap the rewards of being married.
Purchased a new home. Homeownership is a big and rewarding life change that is also one of the biggest tax savings people see. Your mortgage and property taxes can really break the bank, but if you purchased a home, you can deduct home mortgage interest and property taxes. Also, don’t forget the points you paid to secure the loan can also be deducted.
New baby. Did you have a baby on or before end of the tax year? If so, congratulations on the new addition to the family. Combined with all the joy and excitement of a new baby you may be trying to figure out how you’re going to pay for the costs of supporting your baby. Well, fortunately, along with the new baby, your family is now eligible for new tax deductions and credits as well. Some of the tax benefits you will receive for having a baby are the Child Tax Credit (CTC), this credit lowers your federal income tax bill by up to $2,000 per child, the Earned Income Tax Credit (EITC) worth up to $3,461 with one child and up to $6,431 with three kids. You can see why a new baby can be considered your biggest little tax deduction.
TurboTax Live can help you feel confident your taxes are done right and save you money through life’s transitions. Life transitions can feel like many things at once: exciting, emotional, confusing, hopeful and often expensive. On the bright side, expensive life moments often bring big tax benefits and TurboTax Live CPAs and EAs will be by your side so you can feel confident the taxes are done right and you are getting the maximum tax refund you deserve through life’s transitions.