Life is full of surprises and challenges. Luckily, there’s a tax form for just about all of them. Via Kiplinger’s, here’s 14 major life events that allow for smart tax-saving moves, and how to make those moves.
1. Graduating from college
2. Getting your first job
3. Getting married
4. Birth of a child
5. Buying your first home
6. Sending your child to college
7. Changing jobs
8. Working at home
9. Selling your home
10. Buying a second home
11. Getting hit with a major illness or injury
12. Getting divorced
13. Retiring
14. Death of a spouse
(Photo: tjean314)
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I resent that “Getting Married” and “Having Children” are listed before “Buying your first home.”
I feel so underaccomplished…
@AshleyKeen: The order of the list is pretty interesting. I like the “changing jobs” -> “working from home” -> “selling your home” interaction myself. Things fall apart much?
Does it really matter anymore though? My (current) fiance and I bought our house a year ago, before our engagement. Then again, we’re also not planning children at all.
I guess its like my mom said recently: “you seem to have put the cart before the horse, but do what is going to make you happy”.
@jpmoney:
Getting hit with a major illness or injury -> Getting divorced
“Bob was never the same after the accident.”
Am I the only one that read that as “Val Kilmer”?
The article kind of makes it sound number 8 only applies if you’re only self employed but I can’t imagine those rules don’t apply just because you kept the regular 9-5 job too.
The college one seems to contradict itself:
“Hope and Lifetime Learning Credits. … You can’t claim both credits for the same student in the same year.”
and later
“The Hope Credit may be received along with the Lifetime Learning Credit”
I also read that as Val Kilmer, and my first reaction was, “Oh good, he’s doing something these days.
Most of these are a little ridiculous. “Getting your first job” is NOT a tax saving move… you go from paying little to no taxes to paying 40% of your income in taxes. Even if you can deduct job searching expenses, it’s still called a “deduction,” because you’re deducting the probably about less than 1/100th of a percent of the overall you spend on taxes.
@MichaelBrazell: read the title and description again. I think they’re tax saving moves for when these things come up.
Great info, now I can save some money on my taxes!
I am not too sure the “buying a home” one is up to date. It talks about a $7,500 tax credit that has to be repaid. My understanding is that for 2009 it’s now $8,000 and doesn’t have to be repaid.
@Jabes: The article is from December 2008. The stimulus package was but a gleam in Obama’s eye at that point, so yeah, that info is out of date.
@Hil-fish: Well, technically it’s true, it just doesn’t include the newer tax credit. The $7500 credit (that has to be repaid) is still in effect, and you can claim it for purchases until July 1. However, you’d definitely want to claim the newer $8000 credit instead if you bought after January 1.
@Jabes:
I’m glad I’m not the only one who noticed that.
Old article…that explains it.
What about going to grad school?
@SwatLax: Nevermind, I guess it’s the same as sending your kid to college. Except I’m the kid.
Um, I’ll ask the obvious question regarding this topic. Where’s tax cat?
I read the one about getting married and I’m suddenly scared. I can barely do my own taxes, let alone the taxes for both of us. This will be a financial explosion.
@korybing: Get him to do it.
@MostlyHarmless: As impaired as I am when it comes to finances and numbers, he’s about the same. This is what happens when two art majors with no innate math abilities marry.
@korybing: Which is still much better than when two nerds with no innate social skills come together. And the poor kids…
Ergo, I am going to not marry a nerd. (Good luck with that).
The Buying your first home is old and it still talks about how the $7500 is interested free loan, and does not mention the current $8000 credit if you buys home before 12/1/09