| Get SmartTips Newsletters by Email |
 |
SmartTips is a totally free weekly eMail newsletter featuring expert advise and tips on the topics that matter to you, such as:
- Tempated by new car deals? Check here first to avoid over-paying.
- End of the year anticipation? Did something change this year that will affect your taxes?
- 529 College Savings Plans. Your children are never too young—or too old—for you to get started.
Save money with FREE tips on everything from budgeting, managing debt, buying insurance, and planning for retirement.
|
| Get SmartTips Newsletters by Email |
|
SmartTips is a totally free weekly eMail newsletter featuring expert advise and tips on the topics that matter to you, such as:
- Tempated by new car deals? Check here first to avoid over-paying.
- End of the year anticipation? Did something change this year that will affect your taxes?
- 529 College Savings Plans. Your children are never too young—or too old—for you to get started.
Save money with FREE tips on everything from budgeting, managing debt, buying insurance, and planning for retirement.
|
|
|
|
|
|
|
|
Consider your Taxes
|
 |
|
Children can be expensive, but in one aspect at least, they can save you money. How? By lowering your taxes.
Now that your child has become independent, you’ll want to consider the financial implication of losing whatever child tax breaks you used to get. Common ones include the exemption for dependent children, the child tax credit, and the earned income tax credit.
Be sure to:
- Check out IRS regulations to determine when you can no longer claim your child as a dependent for tax purposes.
- Adjust your tax withholding if you can no longer claim your child.
- Discuss strategies with your tax advisor that might help offset your higher tax liability.
Finally, be sure to consult with your tax professional to project the tax implcations impact of your decisions.
Children can be expensive, but in one aspect at least, they can save you money. How? By lowering your taxes.
Now that your child has become independent, you’ll want to consider the financial implication of losing whatever child tax breaks you used to get. Common ones include the exemption for dependent children, the child tax credit, and the earned income tax credit.
Be sure to:
- Check out IRS regulations to determine when you can no longer claim your child as a dependent for tax purposes.
- Adjust your tax withholding if you can no longer claim your child.
- Discuss strategies with your tax advisor that might help offset your higher tax liability.
Finally, be sure to consult with your tax professional to project the tax implcations impact of your decisions.
|
|
|
|
|
|
Notice
By clicking any of the link(s) on this page you will be transferring from this Marsh site to a site comprised of third party content. You hereby agree that Marsh is not responsible or liable in any manner for such third party content hosted on the linked site.
Notice
By clicking any of the link(s) on this page you will be transferring from this Marsh site to a site comprised of third party content. You hereby agree that Marsh is not responsible or liable in any manner for such third party content hosted on the linked site.
|
|
|
|
Find an Accountant An empty nest frees up cash. But it also may bring higher taxes. Don't be surprised at tax time. Find an accountant and look into how your tax liability will change now that your child is gone. 
Source: The American Institute of Certified Public Accountants
| Note | | The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
Find an Accountant An empty nest frees up cash. But it also may bring higher taxes. Don't be surprised at tax time. Find an accountant and look into how your tax liability will change now that your child is gone.
Source: The American Institute of Certified Public Accountants
| Note | | The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
|
Adjust your Tax Withholding
You should try to have your withholding match your actual tax liability. If not enough tax is withheld, you will owe tax at penalty. If too much tax is withheld, you will lose the use of that money until you get your refund.
Now that you've experienced a life event, you should find out if you should change the amount withheld from your paycheck. To calculate your withholding, you can either use the worksheet on IRS Form W-4, or use the IRS Online Withholding Calculator.
If you find that you need to change your withholding, be sure to submit an updated IRS Form W-4 to your employer.
Source: IRS
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
Adjust your Tax Withholding
You should try to have your withholding match your actual tax liability. If not enough tax is withheld, you will owe tax at penalty. If too much tax is withheld, you will lose the use of that money until you get your refund.
Now that you've experienced a life event, you should find out if you should change the amount withheld from your paycheck. To calculate your withholding, you can either use the worksheet on IRS Form W-4, or use the IRS Online Withholding Calculator.
If you find that you need to change your withholding, be sure to submit an updated IRS Form W-4 to your employer.
Source: IRS
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
|
|
|
|
Estimate your Tax Liability
Now that your child has become independent, you’ll likely lose him or her as a dependent for tax purposes. The net result is you'll likely owe more on your income taxes.
But how much wil this affect your taxes? Click the link below to access the online 1040 Tax Estimator:
Source: CPA Site Solutions
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
Estimate your Tax Liability
Now that your child has become independent, you’ll likely lose him or her as a dependent for tax purposes. The net result is you'll likely owe more on your income taxes.
But how much wil this affect your taxes? Click the link below to access the online 1040 Tax Estimator:
Source: CPA Site Solutions
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
|
Read about Strategies to Reduce your Taxes
Looking for ways to take advantage of all the tax savings that are available to you? This Financial Guide provides tax saving strategies for deferring income (often through the use of retirement plans), and maximizing deductions. It includes some strategies for specific categories of individuals, such as those with high income and those who are self-employed.
Source: CPA Site Solutions
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
Read about Strategies to Reduce your Taxes
Looking for ways to take advantage of all the tax savings that are available to you? This Financial Guide provides tax saving strategies for deferring income (often through the use of retirement plans), and maximizing deductions. It includes some strategies for specific categories of individuals, such as those with high income and those who are self-employed.
Source: CPA Site Solutions
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
|
|
|
|
|
After your child or children move out, you’ll have more time, more money, and more space than before. The challenge: to put these extra resources to good use, while adjusting to life without children. The checklist below will ease the transition.
It’s normal to be upset when your child moves out. But if your mood stays down for long, it’s time to get help.Having a child is a life-changing event. So is having a child leave the “nest.” The challenge: to work through your feelings and take advantage of your newfound financial resources. 
Now that your child has left, your financial plan may be outdated. Time to build a new one.Many of the assumptions underlying your old financial plan may now be obsolete. College tuition payments are over. You have more living space than you need. You have more time on your hands to pursue hobbies and travel—and revisit your financial plan.
Now that you have extra cash, put it to good use. Pay down your debt.You helped to launch your child into the world. How about launching yourself into a debt-free retirement?
Tired of mowing a big lawn, paying big utility bills, and cleaning a big house you no longer need? Then consider the benefits of a smaller home.Do you really need all your living space now that your child or children are living independently? More to the point, will lowering your housing expenses enhance your future retirement security? It’s time to answer that question.
Have a more secure retirement tomorrow or have more toys today. Try to make the right choice.The money you spend today not only creates a larger lifestyle in the future, it also weakens your retirement security. Don’t lose the opportunity to save more for retirement.
Now that you’re closer to retirement, “risk” may be a four-letter word. Learn how to manage it here.You’re older now. So you may have a different attitude toward risk. Time to revisit your risk profile and asset allocation—and to rebalance your investment portfolio.
What will happen if you need long-term care in the future? What are your preferences and how will you pay for care? Answer these questions today.The time to begin thinking about long-term care is not when you need it. Begin to discuss these issues with your family now, especially the financial implications of care.
Your child is out of the house. Do you need the same health insurance coverage?
Consider the possibility of taking your child off your plan. You may save some money.
Is your child still dependent on you financially? If not, then your life insurance needs may be lower—and less expensive.While your children are little, life insurance is a crucial element of financial planning. But now that they are independent, it’s time to reassess.
Without a child at home, your need for auto insurance will be less. But your liability risk may be higher. Revise your coverage today.Take advantage of lower auto insurance costs once your child leaves home. But don’t forget to protect your growing assets against liability claims.
An empty nest frees up cash. But it also may bring higher taxes.Don’t be surprised at tax time. Look into how your tax liability will change now that your child is gone.
|
|
|