Life moves fast—and so do the tax implications when things change.
Whether you're getting married, moving, having a baby, or starting a new job, it's important to understand how major life events can impact your tax situation. Mid-year is the perfect time to check in and make adjustments so there are no surprises next April.
Marriage or Divorce
- Marriage might push you into a new tax bracket or make “Married Filing Jointly” more beneficial.
- Divorce can affect filing status, dependent claims, and who gets to deduct alimony (if applicable under older agreements).
- In either case, it’s smart to review your W-4 and possibly update your withholdings.
Birth or Adoption of a Child
- A new child may qualify you for the Child Tax Credit and Child and Dependent Care Credit.
- Don’t forget to get a Social Security Number for your child and update your tax forms to claim the benefit.
- You may also be eligible for an earned income tax credit (EITC) depending on your income.
Buying or Selling a Home
- If you’ve bought a home, you may be eligible to deduct mortgage interest and property taxes (within limits).
- Selling a home? You might qualify for a capital gains exclusion of up to $250,000 ($500,000 for married couples), depending on how long you lived there.
New Job or Side Hustle
- A new job might change your income and tax bracket. Consider adjusting your W-4.
- Starting a side hustle or freelance gig? You may need to pay quarterly estimated taxes and keep records of business expenses.
Moving to a New State
- Moving can affect state income taxes and filing requirements. Each state has its own rules, so it’s worth checking in.
Bottom Line:
Life changes = tax changes. Don’t wait until next year to adjust—being proactive now could save you time, money, and stress later.
Need help updating your W-4 or planning around a life event? Let’s schedule a mid-year review.