On your mark… Get set… Woah! Tax season kicked off with a bang a few weeks ago, but if you’re racing to get your returns filed you may want to check the map before you put your pedal to the metal. 2015 saw an awful lot of tax changes, especially for those who underwent major life events. So take a pit stop and review the highlights below before filing your returns this year.
Own a home with a significant other? You may be in luck! In a win for those yet to stroll down the aisle, the Court of Appeals for the Ninth Circuit ruled the aggregate debt limit for determining your allowable mortgage interest deduction applies on a per-person rather than a per-residence basis. This means unmarried taxpayers co-owning a home can deduct mortgage interest on up to $2.2 million dollars of acquisition debt (married folks are limited a measly $1.1 million). The decision affects previous years as well, so you may be entitled to a refund for prior-year taxes. Our blog, Greater Debt Limit Applies to Unmarried Property Owners for Mortgage Interest Deduction, gives more details.
Get married? Congrats!! Now that everything is all official, did you remember to select the right filing status? The IRS considers taxpayers married by the last day of the year to be married for the entire year (see Your Relationship Status, From the IRS's View).
Did you know? When it comes to imputed income, the actual date of marriage determines what domestic partner benefits are included in income. See our blog, Imputed Income in the Year of Marriage - The (Not so) Definitive Answer for more details.
Adopt? Long nights, brown bag lunches, and college essays are cresting the horizon. Starting a family is one of life’s greatest joys, but a costly one - especially when adopting. The Internal Revenue Code provides two tax relief options for adopting parents: the Adoption Credit and the Adoption Benefits Exclusion. In our blog, Tie the Knot or Finalize the Adoption First?, we illustrate some tax savings couples can achieve by becoming ma or pa prior to saying “I do.”
Transition? 2015 was the year of Caitlin Jenner and Lavern Cox, but how did Cait legally become ‘Caitlin Jenner?’ For those undergoing, undergone or are considering a transition, changing your name may involve significant action on your part. Check out our blog, What's In a Name Change? for some helpful tips.
If you have questions about your specific situation, make a pit stop with the Tax Warriors at Drucker & Scaccetti. We are happy to give your tax knowledge a tune-up! Our LGBT Tax Consulting Group can help you understand the law as it applies to you and advise you on possible tax saving strategies. Just click here or give us a call at 215-665-3960.