What life events can affect my taxes?

There’s no time like tax time, right? You can make filing taxes even smoother by knowing which life events affect your return.

In today’s episode of Your Money Minute with Tracy Stewart, CPA, I want to share a few life events that will affect your tax return.

There are certain life events that impact how you manage your money. These life events include marriage or divorce, receiving a large inheritance, taking care of grandchildren as dependents, expensive medical bills, relocating for a job, death of a spouse or taking social security benefits. This list, while certainly not comprehensive, gives you an idea that, if it affects how you spend or save money, it’s likely to impact your tax filing.

Sometimes events outside of your little life bubble can trigger changes to your tax return — like a new tax act. If you have questions about changes to the tax code, seek the advice of your tax preparer. I recently contacted mine to make sure I was taking advantage of all that I could, given the passage of the most recent tax act.

Always dialogue with your tax professional when big changes happen in your life. Bottom line: If it has financial implications or you think it might impact your taxes, always ask.

Financial independence is unbelievably liberating. Mastering the madness of taxes will cause you to stress less and have greater peace of mind about your money — and we all want that, right?

Remember: You can subscribe to my YouTube channel for even more practical advice on making the most of your money and life in the next episode of Your Money Minute.