Tax season is here once again and there arises the need of understanding all about tax return and how can we make the most. The process of filing taxes becomes even more complicated when certain life events occur, as most of these life events can greatly impact your tax return. Through this blog, we shall discuss seven crucial life events that can have a role to play on your tax return and how professional tax return services in Melbourne can help you navigate these changes.
7 Life Events and Their Impact on Tax Return
1. In The Event Of Marriage
Marriage is undoubtedly a major life event and can surely impact your tax return. After marriage, you have the option to file your taxes jointly or separately. When you file jointly, there will be a lower tax bill. So, you can take advantage of a few deductions and credits that are not available to single filers. Here, your tax bracket may change when filing jointly, which could thereby lead to a higher tax bill. Professional tax return services in Melbourne can help you determine what is more suitable for your specific situation and make sure that your necessary forms are filled out correctly.
2. In Divorce cases
Just as in marriage, if you are in the process of getting a divorce, you may still be able to file your taxes jointly with the person you are about to get a divorce. However, if your divorce is finalised before the end of the tax year, you will have to file as a single or head of household. Divorce sometimes also impacts the division of assets, which may have tax implications. A professional tax return services can help you travel through the complexities of filing taxes during a divorce.
3. When You Have a Child
When you have a child, you are at the top of the world. However, you have an added responsibility, including the impact on your tax return. If you are a parent to a child, you may be eligible for certain deductions and credits, such as the Child Tax Credit and the Child and Dependent Care Credit. These credits can lower your tax bill and are, therefore, a great way to increase your refund. Get in touch with professional tax return services in Melbourne to help you determine which credits you are eligible for and also help you claim them correctly.
4. When Starting a Business
When you start a business, as a business owner, you would be eligible for deductions and credits related to your business. These include certain expenses, home office deductions, and the Qualified Business Income Deduction. Contact professional tax return services in Melbourne to help you understand the intricacies of preparing tax files as a business owner.
5.When Inheriting Money Or Property
The instances of inheriting money or property can also play a role on your tax return services. Inheritance can be subject to estate tax and inheritance tax. It can highly affect the amount of money you receive. Experts recommend to consult with a professional tax return services in Melbourne to help you learn about the tax implications of your inheritance and make sure that you pay the correct amount of taxes.
6.When You Retire
Retirement is an important life event and can equally impact your tax return. Once you retire, your income may decrease. At this time, you may be eligible for certain tax breaks. Additionally, if you withdraw money from your retirement account, it may be subject to taxes. A professional tax return service can help you file taxes during retirement and enable you to take advantage of any available tax breaks.
As it is important to understand how they can affect your taxes, it is best to consult with our professional tax return service at Ezy Tax. We have the best team of professionals to help you increase your tax refunds. Call us now!