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Getting married, having a baby and buying a home are some of the most joyous moments in life, but these big events could mean you need to change how you file your taxes.

Benjamin Franklin famously wrote that nothing is certain “except death and taxes.” It’s also true that your life will constantly be changing. And major events are likely to impact how you file your taxes. For example, when you grow your family, buy a house or change careers, what rules apply? And are there new ways to potentially cut your tax bill?

Here’s what to keep in mind when you file your taxes after a major milestone:

Saying “I do”

Congratulations on your wedding! As a married person, there are lots of ways to build your financial life together, taxes are just one part.

•  When it comes to your filing status, you have two choices: married filing jointly or married filing separately. It’s an important decision because your filing status helps determine what credits and deductions you may qualify for and how much you’ll owe in taxes.

•  Most married couples file jointly, but there are a few times when filing separately might make more sense. These include if one spouse has a lot of medical expenses or if either of you has an income-driven repayment plan for student loans.

Welcoming a child

Wonderful news! The arrival of a child means you may qualify for certain tax credits — and credits are especially valuable since they cut your tax bill dollar-for-dollar.

• ����� is worth $2,000 for every dependent child you have under the age of 17. At higher incomes, the credit is decreased and eventually phased out.

•  If you pay for child care — daycare or pre-school, for example — you may be able to claim the . Depending on your income, this credit is worth 20 to 35% of qualified expenses up to $3,000 for one child under age 13, or up to $6,000 for two or more children under the age 13.

•  For families with low or moderate income, the is available. As your family size grows, the income limit also goes up. For example, in 2023, a married couple with three children and an adjusted gross income of $63,398 could receive up to $7,430 in credits.

•  To claim tax benefits, children must have a , so make sure to apply for one right away.

Getting divorced

A lot of things change when a marriage ends, including how you file your taxes.

•  In addition to changing your filing status, divorce can affect your eligibility for certain deductions and credits.

•  Typically, the parent with custody of the child can claim them on their taxes. If custody is split 50/50, then the parents must agree who gets to claim the child as a dependent or come into play.

•  For any divorce or separation agreements signed in 2019 or later, payments are no longer deductible by the spouse who pays them and they no longer count as income for the spouse who receives them.

•  If you’re getting divorced and changing your name, make sure to notify the Social Security Administration so your tax return and SSA records match.

Buying a home

It’s an exciting – and expensive – milestone moving into a new home, so, make sure you know what deductions are available.

•  If you take the on your taxes, becoming a homeowner is a good time to do the math to see if itemizing your taxes will save you more money.  

•  One of the biggest tax breaks comes from deducting your mortgage interest and property taxes from your taxable income. Your lender will send you a 1098 form in January that shows the interest you paid on your loan. As for property taxes, the deduction for state and local taxes — which includes property taxes — is capped at $10,000.

•   If you take a , that interest may also be deductible — but only if you use the funds to “buy, build, or substantially improve” your home, according to the IRS. If you tap your home equity to pay off credit cards or cover college tuition, the interest is no longer deductible.

Selling a home

If you made a profit on the sale, great news! But does that mean a big tax bill on the gain?

•  You won’t necessarily have to pay tax on capital gains — the difference between what you paid for your home, plus the cost of major improvements, and the — if that amount is $250,000 or less if you are single and $500,000 for couples filing jointly. This exclusion applies only if you owned and lived in the home for two out of the five years before the sale.

•  If you sell for less than you paid for your home, however, you unless you used the home for business.

Starting a new job or getting a promotion

Changing jobs is an exciting milestone — and one that involves several important decisions that can have an impact on your taxes.

•  With any new job you’ll likely need to fill out a so your employer knows how much tax to withhold from your paycheck.

•  Whether you’re starting a new job or you got a big promotion, an increase in salary could put you in a higher tax bracket. You can see what you’ll likely pay with IRS’s tool.

•  If your new employer offers a 401(k) or other tax-advantage account, you’ll want to consider signing up (if you’re not automatically enrolled) and decide how much you want to contribute. These contributions come with tax deductions.

•  Your health insurance could also provide tax benefits. If you sign up for a high-deductible health plan you can also contribute to a . The money you contribute is pre-tax, the account grows tax-free, and withdrawals for qualified medical expenses are tax-free, too.

Getting ready for retirement

This is the milestone you’ve been working toward. Enjoy this time in your life – you earned it.

•  Once you start collecting Social Security, keep in mind that up to 85% of your benefits could be , depending on your overall income.

•  In retirement, withdrawals from traditional IRAs and 401(k) plans and other qualified retirement accounts are taxed as ordinary income. Withdrawals from Roth IRAs and Roth 401(k)s are tax-free. See how these different accounts work.

•  When you sell investments that you’ve owned for more than a year, you owe on your long-term gains, and that rate may be lower than your top income tax rate.

���ٳ�����life moments can affect your finances – and your taxes -- like whether you have educational expenses, had an inheritance or if you’re handling the estate of someone who has died. In each case understanding the rules and staying informed about how life events can affect your taxes is crucial.

With careful planning and the right resources, you can confidently manage your tax return now and in the coming years.

Explore more with our Tax Resource Center. Getting a tax refund or bonus? We’ve got tips on how to make that money work harder for you.