TurboTax Life Events Advisor
With the TurboTax Life Events Advisor you can plug in different scenarios to see how they effect your year end tax debt.
If you have experienced, or are contemplating a big life change, this is a great tool that can help you determine how it will effect your tax return.
Many taxpayers find themselves in a whole new word from one year to another. Many changes that we go through in life will have a dramatic effect on our taxes.
How Life Changing Events Recalibrate Your Taxes
Life changes as we grow and move through life, and those changes can bring us tax breaks, or cost us more money in taxes. These changes can include:
- Getting a job, or changing jobs
- Getting a raise that increases your income
- Getting Married, shacking up with your significant other
- Having a baby, adding to the family
- Buying a new home, or refinancing the one your in
- Back to school, deducting continuing education costs
- Check your health, deducting medical expenses
The TurboTax Life Events Calculator Can Help
The TurboTax Life Events tax return calculator asks simple questions about each event to help you determine how these changes can benefit your year end tax bill. For example, if you've welcomed a new baby into your life, the first thing the life events calculator does is identify the dependant child exemption you can claim which is worth almost $4,000.
Many scenarios in life offer big changes in your year end tax figures. While I can't say they will all be beneficial to you, there is no doubt that in many cases they will be a positive influence.
Those of you who are among the millions of Americans who will have experienced one or more significant life changes this year (got married, had a baby, bought a new house, etc.), you have some big changes in store when it's time to prepare your tax return.Here are several tips on how to prepare for income tax changes you may experience
Getting married is great, but after the honeymoon, you and your new spouse should test out a W-4 Withholding Calculator to see if any adjustments in withholding from either of your your paychecks is necessary.
This is a good time to sit down and revisit a W-4 Withholding Calculator to determine how many withholding allowances you should claim in an attempt to come out near even at year end with Uncle Sam.
All working couples should pay more attention to under-withholding than over-withholding. That's because nobody likes to get a big year end tax bill they weren't expecting.
The goal here is to match your withholding allowances with what you will actually owe the IRS on your year end tax bill.
This way you wont have to worry about a nasty tax tax bill surprise. Plus, you can avoid giving Uncle Sam an interest free loan by paying in too much in taxes
It's all about paying as little income tax as you can. Use the TurboTax Life Events Advisor to insure your making good financial decisions.