Taxes are the bitter truth of our lives which are unavoidable in all sorts of circumstances. There are certain events in our lives which have an impact on the way the taxes are levied. Here are the few events listed:
Birth or Adoption of a Child
The biggest life changing event in any one’s life is the addition of a baby in their family. The adoption or birth of the child changes our lives in every way. We get so indulged in the child that we tend to forget the changes that will occur in our tax returns. Most parents are eligible for the Child Tax Credit, which is worth up to $1,000 per qualifying child. This credit can be claimed in addition to the Child and Dependent Care Tax Credit.
If you have purchased a Health Insurance through a Health Insurance Marketplace, you need to report about some of the changes I your life to the health insurance marketplace because they might affect your eligibility for the Premium Tax Credit. Here are few aspects which are to be informed:
- Any change in your household income
• Any change in your marital status; Marriage or divorce
• Any change in your family members; Birth or adoption of a child
• A change of job, especially if it is providing you health care facility
- Any change in your eligibility for other health care coverage
• Any change in your address
Death of a Family Member
Typically, the individual tax return covers the period from January 1 to the date of death, and any income, deductions, and credits are reported on a fiduciary income tax return for the decedent’s estate. For a deceased taxpayer, the individual’s personal representative who is appointed by a court to handle the decedent’s property is responsible for filing his or her final tax return and any returns for the estate.