Major Life-Changing Events and Your Taxes
There are several major life events that, when they happen to you, will change your tax situation and dramatically affect your tax benefits.
1. Marriage
Getting married will change your life in many ways, including your tax situation and tax benefits.
You will need to change your filing status.
You can claim a new tax exemption.
You may want to adjust your paycheck withholding.
Learn about the marriage "penalty" and "bonus", and other aspects of taxes and marriage.
Divorce will also affect your taxes.
Learn about child support, alimony, and other elements of divorce and taxes.
Do you qualify for innocent spouse relief?
Who gets to claim the dependents?
2. Children
Having a child or otherwise gaining a dependent can qualify you for a number of tax benefits:
A larger Earned Income Credit
The Child Tax Credit
The Child and Dependent Care Tax Credit
Child tax deductions
The Adoption Tax Credit
Other federal tax credits for family
If you are not married and have a child, you may qualify for the Head-of-Household filing status.
3. House
Once you own a home, many tax benefits become available to you:
Mortgage interest and other tax-deductible home expenses
Home office tax deductions
Tax credits for energy efficient homes
Canceled debt relief
First-Time Homebuyer Tax Credit (for 2009 and 2010 amended returns)
4. College
If you go to college or continue your education after high school, there are tax benefits for you:
Education tax credits (American Opportunity and Lifetime Learning Credits)
Student tax deductions (student loan interest and tuition)
Tax-free college savings plans
Scholarships, educational assistance, and other forms of tax-free income
How to File Income Taxes: A Guide for Students
5. Job
Employment is the cornerstone of the economy, and getting a job has many associated tax benefits:
Working may qualify you for the Earned Income Credit.
Find out ways your employer can give you tax-free income.
New job? Adjust your income tax withholding.
Deductible work-related expenses
Employee expense deductions
Start saving for retirement.
Tax help for members of the Armed Forces
Special employee tax deductions
Looking for a job? Deductible job-search expenses
Find out the tax effects of job loss and unemployment.
Other Life Events that Affect Your Taxes
A list of expenses that do not qualify as a tax deduction