The great thing about January (and the beginning of a new year) is the optimism that people share. Optimism helps people take calculated risks and try to better themselves for the future. This is also the time of year when some people plan significant life events that, unbeknownst to them, could have significant tax implications.
This post will highlight a few examples.
Getting a new job – As you complete your new employee orientation, you will likely complete a w-4 form, which will deal with the number of withholdings you desire. Depending on the withholdings you may not have enough taken out in taxes to satisfy your legal requirements. It is important to know what should be withdrawn so you are not surprised come tax time.
Getting married – For those who have decided to tie the knot over the holidays, you may be in the midst of planning your special day. But another thing to plan for is the benefit of higher tax deduction thresholds once you say “I do.” With that said, it is important for newlyweds to pay attention to their respective withholdings once they are married. It may beneficial for the higher earning spouse to use them.
Buying a home – This is arguably the most expensive investment to be made in 2017, regardless of whether you do so on your own, through an ownership group, or with a spouse. Despite the expense, buying property comes with generous tax incentives because the interest paid on a mortgage, as well as the property taxes that are paid are tax deductible.
If you have questions about other life events that could have tax implications, an experienced attorney can help.