Life is a progression of changes. Childhood, college, marriage, and having kids are some of the biggest changes in life that the ordinary person goes through. Taxes are an inescapable fact of life. This means the IRS keeps track of your life and the events in it and makes corresponding changes to what you owe in taxes.
If you enroll for more than half the time a college course takes e.g. two years for a four-year course, you are eligible for tax credits known as American Opportunity Credits. If you apply for a loan, the student loan interest is deductible from your tax.
Getting a job means you will start paying income tax based on the salary and other benefits you get. If you have to relocate more than 50 miles to take your new job you can claim the expenses incurred in moving. You can also claim tax relief if you purchase specialty clothing for a new job. Dues and fees paid when joining a labor union are also tax deductible.
When you get married you have the option of filing tax returns jointly with your spouse. This will depend on your incomes. Two high-income people filing jointly will move up to a higher tax bracket while filing separately will mean you remain in your tax bracket.
Filing jointly will allow for higher charitable contribution limits as well as a jobless spouse to increase IRA contributions. .
Expenses related to having a baby are tax deductible. In vitro fertilization, vasectomy reversal costs, and other medical costs are allowed to add to 10% of your gross adjusted income and counted as deductible medical expenses.
If you and your spouse are working and one of you quits to look after the kids, you are entitled to child care and dependent care credits which are counted per child under the age of 17 years.
Buying a house
If you buy your home with a mortgage, you are allowed to deduct the interest on the mortgage loan from your taxes. This also includes a second mortgage or home equity covering the loan.
Any support received as alimony is considered income and is taxable. The person paying the alimony can claim it as a tax-deduction.