Taxes: A Family Matter?

All over, families are changing. Whether there is a child being born or a marriage going downhill, these matters can be very important for your taxes. Due to this, it is best to let a tax professional know if anything is happening to change your family situation. But you might wonder: Why are these things important?

First of all, if you are adding a child to the family, through either natural birth or adoption, there are certain impacts. It could affect your taxes or tax returns, for example. Also, if you are hiring a nanny for the kid, you’ll have to pay things such as Social Security and Medicare for them. If you are adopting, that is another deal on top of this. You could qualify for certain tax credits or exemptions. This is a possibility for both foreign and domestic adoptions. There are also assistance programs that an professional can help you learn about.

Similarly to children, marriage situations are also important to your taxes. If you are getting married, you could be put into a different tax bracket due to your partner’s income. You might want to adjust your withholding, and you need to know this information in order to take further steps. On the opposite side, if you are getting a divorce, there are different things to follow. For example, alimony no longer counts as income, and the ex-spouse who pays it cannot deduct that amount in taxes. There are multiple other factors that involve marriages and divorces, but it would be best to ask personally about them.

Family matters may seem personal at first, but they could adversely affect you if not factored into your taxes and such. It is wise to tell your tax expert anything new that happens with these things to prevent paying more than you have to and being proactive in your taxes.