Life Events

Not every major change fits a neat category. These answers address several life situations that commonly affect taxes and finances.

I lost my job. What should I know about taxes?

Unemployment benefits are generally taxable income, and you can ask to have tax withheld. Severance pay is taxable wages. If you cash out a retirement plan, you may owe income tax and possibly an early withdrawal penalty, so rolling the funds over is usually better. Look at your health coverage options right away, including COBRA and the marketplace at healthcare.gov.

I moved. What do I need to do?

Update your address with the IRS and the Georgia Department of Revenue, the Postal Service and your employer. If you moved to or from another state during the year, you may need to file part-year returns. Some job-related moves have different federal treatment depending on current law, so ask us.

I started a side business. How does it affect my return?

Net income from self-employment is taxable and subject to self-employment tax. You may need to make estimated payments. You can deduct ordinary and necessary expenses, but keep good records, and the activity must be run with the intent to make a profit.

I am selling my home. Will I owe tax?

Many homeowners can exclude some or all of the gain on a main home if they meet ownership and use requirements. Others may owe tax on a portion of the gain. Keep records of purchase price and improvements.

I have received a notice from the IRS. What now?

Do not ignore it. Read it carefully, note the response deadline and compare it with your return. Many notices are resolved with a simple reply or payment. If you disagree, respond in writing with supporting documents. See our IRS problem resolution services.

I am retiring. What changes?

Income typically comes from Social Security, pensions and retirement account withdrawals instead of wages, so you may need estimated payments or withholding from those sources. Plan how and when to take withdrawals, since the order can affect your taxes.

I am caring for a family member. Can I claim them?

You may be able to claim someone as a dependent or qualify for head of household or credits if you meet income, support and residency tests. Medical expenses you pay for them may also count.

Whatever your situation, contact us and we will help you understand the tax impact.