March 11, 2011
6 Income Tax Tips – After choosing a new life
For everyone who needs to file their income taxes after moving to another job, getting married, or changing their life as a freelance, these changes can bring impact to your relationship to the IRS.
Below are the tax tips after choosing a new life:
1. Report any changes in your status – Tying a knot can affect your social security number. After getting married you must prepare your new social security number. Lots of newlywed didn’t know that once their names and social security number didn’t match their returns can be rejected.
2. Report present address – Moving to a new address can also affect your returns. Make sure you submit a report to the IRS saying that you’ve moved to a new address. Visit the irs.gov to download Form 8822 when submitting a report. You must notify your employer, so that you’re W-2s or other forms can be sent to your new address. In addition, if you crossed the state lines, be sure you are paying the proper state taxes.
3. Review you’re withholding – After having a baby, buying a home or getting married, many people found out that they are not properly withholding the amounts on their paycheck. It can end up owing lots of green money on April 15.
4. Go for filing status that is least expensive – You can decide to use whatever filing status you want. Filing jointly for married people – which they can share income, deductions, and credits – or maybe filing separately. Sometimes filing jointly is the most appropriate option, but you can also do your income taxes in both ways to determine which filing status has the lowest tax bill.
5. Seeking a tax accountant – Accountants are expensive, but, they can help you if your taxes are too complicated; in the end professionals can save your money.
6. Deduct your moving expenses – If you’ve moved at least 50 miles for a new job or to start a new business, you are allowed to deduct moving expenses like transportation, lodging etc…
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