Multiple Life Events

[araymond321]

Hello,

This year my wife and I had our first child, bought our first home, and got a new job. I was wondering what the best course of action will be when we file our taxes for this year. I was also wondering how to update our w4's. I work a normal salaried position, but my wife gets a base wage with additional added depending on how many clients she sees in a week. She also recently started working another job on the side with a wage. Will she need to update her w4's for both employers?

[Loretta P]

Hello araymond321, Congratulations on so many exciting life events in one year.  Let me try to answer these one at a time.

The best way to determine what changes you may need to make on your W-4 is to use the TurboTax W-4 Calculator 2023

The calculator will have you indicate if you have multiple employers and will walk you through things step by step.

A child born during the tax year is considered as having lived with you the entire year.  For example if your child was born in August, they are still considered to have lived with you all 12 months.  This can be important for possible credits.

Some common deductions when purchasing a home are the mortgage interest paid, Mortgage Insurance Premiums, property taxes paid, etc.  

Here are some helpful links:

Birth of a Child 

Tax Breaks and Home Ownership 

Thank you & congratulations again!