As a tax service in Jamestown, ND, we know that many people with stable careers and families file tax returns that tend to look very similar year after year. But what about those major life events that effect you financially? It is important to keep in mind that if 2015 included something particularly memorable for you, then there is a good chance that it will also be significant to the IRS.
When your taxes look dramatically different from previous years, it is always a good idea to enlist the help of a professional. With that in mind, here are six factors that could affect your tax return:
- Change in marital status: Whether you tied the knot or went through a divorce in the last year, this change in marital status is going to have an impact on your taxes, particularly if you and your spouse do or did file jointly. For divorced taxpayers, related factors like settlements and child support will also come into play.
- Real estate transactions: If you bought or sold property this year, expect your taxes to reflect the major change. The interest you pay on a mortgage can be deducted, while money earned on a sale will likely be taxed. If you have never navigated these waters before, hire an experienced professional for assistance.
- Changing number of dependents: Welcoming a new child into your family is of course an exciting and emotional time, and it is also often a perk when filing taxes, as you get to claim another dependent. But if your child has gone away to college or entered the workforce and is now filing their own taxes as an independent, you need to remember not to claim them as a dependent anymore.
- Inheritance: Losing someone close to you is never a reason for celebration, but one silver lining can be a generous inheritance. Unfortunately, the tax laws surrounding inheritances and gifts are often confusing to the layperson, meaning it is best to hire a tax service in Jamestown, ND for help filing this year.
- Change in employment: Whether you finally got a promotion, quit the company job and started your own business or settled into retirement in 2015, a change in employment and income is obviously going to affect your tax return. And if you held more than one job during the year, you will need to account for all of them when filing.
- Major medical issues: If you or a spouse or dependent spent time in a hospital or extended care facility in 2015, or required in-home care, the expenses not covered by insurance might be tax deductible. Ask a trusted accountant for guidance to ensure you are filing correctly.
Whatever happened to you in 2015, hiring an experienced, respected and knowledgeable tax service in Jamestown, ND can help make filing taxes a whole lot easier. If you would like the help of a seasoned professional this tax season, please get in touch with Craig S. Hanson, CPA today.