Summer Life Events and Taxes – Did You Know? (1/2)

People often make life changes during the summer, both short-term and long-term. Many of these changes may require adjustments to your tax planning, and some create opportunities for significant tax savings.

If you get married this summer or fall, taking a few steps now will help keep your tax filing simple next spring. First, make sure to report any name changes to the Social Security Administration. Second, if your new life together involves a relocation, notify the IRS of your new address. Also remember that marriage means a change in your tax filing status, which may necessitate an adjustment to your tax withholding or estimated tax payments. The IRS Withholding Estimator (link below) can help you stay on track.

Summertime can also mean paying for additional childcare so you can work, or sending your kids to summer camps. If you qualify, you may be able to claim the Child and Dependent Care Credit for a portion of these expenses.

Our tax professionals at RTW Xxact Enterprises, LLC. can help you determine how summer life changes may affect your taxes, and how to best take advantage of tax saving opportunities.

IRS Withholding Estimator: