There’s an old adage regarding the payment of taxes. Essentially, there are two certainties in life: death and taxes. In fact, taxes have been a part of your life since you were born, and you will certainly have to deal with them until you pass away.
If you are uncertain about the instances in life where you will have to deal with taxes outside of filing your return, this post will provide some examples.
Getting a new job – As part of the onboarding process, you will likely complete a w-4 form, which will deal with the number of withholdings you desire. The higher number of withholdings, the more taxes will be taken out of your check. The more money taken by the government, the less likely you will owe taxes at the end of the year.
Getting married – When you decide to join your lives together, you also will be able to benefit from higher thresholds for deductions. However, it is important for couples to pay close attention to their respective withholding elections. Essentially, the higher earning spouse should use them.
Buying a home – A home purchase is likely the most expensive investment a person (or couple ) will make. Despite the expense, a home purchase comes with significant tax incentives. Basically, the interest paid on a home loan is tax deductible. The same applies to property taxes that you pay.
The preceding is not legal advice. If you have questions about other life events that have significant tax implications, an experienced attorney can help.