Articles for Financial Advisors

Tax Tips for 10 Events in Life

Tax Tips for 10 Events in Life

There are tax strategies to ease the burden for any of the following events: marriage, divorce, birth and adoption, change in employment, starting a new business, disasters, change of household, medical expenses, retirement, and death.


Tax Advice For Major Events In Life



Possible Benefit or Concern


If married on Dec. 31st, IRS considers you married for entire year.

  — some couples should adjust their withholdings to avoid penalties


Once divorced, only one former spouse can claim a child dependent.

  — as of 2013, personal exemptions phase out starting at $250K AGI


SS numbers must be obtaining before taking the exemption.

—    child care credit of $3K ($6K if 2 or more children)

—  adopting parent(s) can qualify for credit of $12,970 for 2013

Job Change

Pay for unused vacation and sick leave are taxable.

  — if you are in a low tax bracket, consider a Roth conversion

New Business

Record business meals, equipment, travel and auto expenses.

  — if you work from home, you may be entitled to a $1,500 deduction


If allowable losses, then can be carried back 2 years and forward 20.

  — IRS rarely allows any type of carryback for individuals


Minor and adult dependents are defined in IRS Publication 501.

  — for 2013, each dependent is worth up to $3,900


For 2013 and after, deduct medical expenses > 10%.

  — the previous hurdle of 7.5% still applies to those age 65 and older


Withdrawals from Roth accounts do not raise Medicare premiums.

  — Roth withdrawals also do not raise taxes on Social Security payments


Each spouse gets > $5 million exemption on gifts and estate

  — when spouse dies, add their exemption to yours by filing estate return




For Advisors by Advisors. Browse all Programs.