4 Common Tax Surprises
We’ve all been there. It’s tax time and a surprise comes up that you were not expecting that impacts your tax return. While some surprises may be good, others may not affect your return in the way you had hoped. We have put together our top 4 common tax surprises. This short video explains situations that could impact your taxes and how to plan for them in the future.
- Life Events: Some life events may positively impact your tax return, but others could surprise you depending on your filing status.
- Growing Children: The age of your children impacts several tax credits, and it’s essential to know those age cutoffs not to be surprised.
- Sales: The sale of property, stocks, or mutual funds can impact your tax return. Think ahead when making these transactions.
- Retirement: Receiving social security after retirement and then deciding to get a job or withdrawal additional funds potentially causing your benefits to be taxable.
Want to avoid these surprises? Review your yearly tax situation with your accountant. That way a planned pleasant surprise could be in store for you next year.
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About the Author: Shelly Spata, CPA
Shelly Spata joined the firm in 1998, and her name went on the door in 1999. She now serves as the Managing Partner of the firm. "As a business owner myself, I understand the complexities and challenges business owners face, and I strive to add value by helping clients understand their financial statements, manage tax consequences, and clearly see the financial and tax ramifications — both positive and negative — of decisions they make," she explains. "Without good financial information, it’s like driving a car blind, but with good information, clients are able to maximize profits."
