When a person lands, or loses, a job, the last thing they may think about is their taxes. But these events could all have an effect on your income returns during filing season, so it's best to sit down every few months and decide if it's time for a "tune-up," according to the Detroit News.
Given the state of the economy, individuals who have gained or lost a job recently need to determine how it may impact their taxes. For example, those who have gained employment may be pushed into a different income bracket or find that they may no longer qualify for credits they were previously eligible for, said the newspaper. In contrast, a job loss may increase or change the credits and deductions a person should claim.
Many workers choose the summer when their children are out of school to relocate for a new job. If the position is more than 50 miles from the location of their previous home, the worker may be able to deduct some moving-related expenses from their taxes.
Anytime a big event occurs that may affect a consumer's income, it's always a helpful idea to speak with a tax preparer. This will ensure that individuals receive the maximum benefits during filing season.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.