Tax Tip: How Life Changes Affect Your Returns


0  Updated at 3:45 am, March 6th, 2014 By: ABC Digital
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lucky336/Thinkstock(NEW YORK) — When something big happens in your life, you might want to do something a little bit more substantial than just changing your Facebook status.

“It is very important to contact your tax professional when you do some major changes in your life, such as get married, or get divorced, if you have children,” says tax accountant Janice Hayman.

She tells ABC News Radio you should consult with a professional before you automatically go and change your W-4.

For recent newlyweds, tax professional Richard Gartland with H&R Block says, “of course you’re now required to have a married status. That often changes things, often for the good — you often have better deductions available to you.”

Having a child may also increase your refund.

“The birth of a child adds a dependent. There are also some child-related tax breaks. There is a child tax credit for people at certain levels of income. There are also credits for child care,” says Gartland.

Copyright 2014 ABC News Radio

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