More and more Millennials are beginning to get married and have children. No one enjoys tax season, and I bet they don’t either. But here are some tax tips for new families that will help navigate you through the tax process.
1. Make Sure You Have All Your Tax Documents
Some of your tax documents will come via mail, and some may be found online. Gather them together and keep track of them! Tax documents include: Health Care Statements (1095-A, 1095-B, 1095-C), needed to verify health insurance coverage; and Income/Deduction Statements (W-2, 1098 Forms, 1099 Forms).
2. There Are Many Great Tax Deductions
There are opportunities to reduce your taxable income. These allow you to reduce your tax liability. Deductions can include the number of children you have (even one born on December 31), day care expenses, property taxes and car registration fees and charitable deductions.
3. Attention, New parents
Don’t forget about the $1,000 Child Tax credit. This directly reduces your tax bill by $1,000. This is different than the deduction mentioned above, as it directly reduces your tax bill dollar-for-dollar.
4. Contribute to an IRA or HSA Account
When you contribute to an IRA for retirement or a health savings account for healthcare expenses, you may be eligible for certain tax deductions based on the amount of your contribution and your income level. When you contribute to an IRA you are preparing for your future, and an HSA account sets aside tax-free money for medical expenses.
5. Don’t Be Afraid to Ask for Help
If you are in doubt, make sure you contact a tax professional for guidance. It pays to use a knowledgeable tax professional, as they may find credits and deductions that you don’t know you qualify for.
This year, be proactive about your taxes and start now. If you haven’t started organizing your tax documents, it’s better to start early than waiting until the last minute. There are many resources that can help you find the best option. Call us at 615-326-TAX9 for a free consultation.
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Stephen Wallick started Stephen Wallick & Associates to provide tax and accounting services to Contractors, Real Estate Investors, and Realtors. Steve specializes in IRS Tax Resolution services and works with his clients to resolve cases under scrutiny by the IRS. As a tax professional and enrolled agent, Steve can save you money with IRS loopholes each year. With over 20 years going up against “The Man”, Steve is uniquely qualified to resolve even the toughest IRS cases.