Every year the US Congress enacts or removes legislation to reduce or increase limits to the tax code. Although many of these legislative changes occur throughout the year most Americans don’t realize how these changes impact their take home pay until the April 15th tax filing deadline.
If any of the following changes happened to you in the previous year, you need to speak with a File 4 Me professional.
- Marriage or Divorce – If you are married December 31, you are considered married for the entire year
- Children – A child born on or before December 31 is assumed to have lived with you the entire year
- Home – If you paid points when you purchased your home mortgage, interest and real estate taxes are deductible
- Education – It you are in school or have student loan interest you may be able to use this as a tax deduction
- Employment – If you move to take a new job, you may be able to claim moving expenses
- Employee Expense – expenses you incurred that are not reimbursable by your employer, may be eligible as an employee business expense.
- 401K and Roll-Overs – If you changed jobs or loss your job and had to use your 401K to pay medical expenses you may avoid paying an additional 10% penalty
- Retirement – Pensions and annuities are taxable. Be sure to have taxes withheld or make quarterly estimated tax payments using Form 1040 ES
- Inheritance and Gifts – Inherited property receives a stepped-up basis to fair market value.