Life moves fast—don't let your taxes fall behind. Whether you are getting married, buying a home, or managing an inheritance, we ensure your tax strategy evolves with your life.
Life events are significant milestones—such as marriage, divorce, the birth of a child, purchasing a home, or receiving an inheritance—that drastically alter an individual's tax situation. These events often trigger changes in filing status, modify eligibility for tax credits, and create new reporting requirements for assets. Proactive tax advisory during these transitions is essential to adjust withholding (Form W-4), utilize exclusions like the capital gains home sale exclusion, and avoid "marriage penalties" or unexpected estate taxes.
Tying the knot or separating involves more than just a change in relationship status; it fundamentally changes how you file. We help newlyweds decide between "Married Filing Jointly" vs. "Separately" to minimize the "marriage penalty" and adjust W-4 withholdings so you don't face a balance due in April. For those divorcing, we provide critical guidance on the taxability of alimony (for older decrees), dividing assets, and claiming dependents to ensure the separation agreement is tax-neutral.
Buying or selling a home is likely the largest transaction of your life. We guide you through the tax implications of closing costs, points, and property taxes. When selling, we ensure you qualify for the Section 121 exclusion to exclude up to $250,000 ($500,000 for couples) of capital gains from your income. We also advise on converting primary residences into rental properties without triggering immediate tax consequences.
Receiving a windfall can be overwhelming. We clarify the complex rules surrounding gifts and inheritance, ensuring you understand "stepped-up basis" rules that can save you thousands in capital gains taxes if you sell inherited stock or property. We also prepare Gift Tax Returns (Form 709) if you are the one giving assets, helping you leverage your lifetime exemption to transfer wealth tax-free.
Growing a family brings new tax opportunities. We help you maximize credits for newborns and adoptions (Adoption Tax Credit) to reduce your immediate tax burden. As children grow, we advise on the most tax-efficient ways to save for their future, optimizing traditional 529 Plans alongside new tax-advantaged "Trump Accounts" to ensure maximum growth. We also ensure you claim the American Opportunity or Lifetime Learning Credits the moment tuition bills arrive.
Empathy Meets Expertise
During major life transitions, the last thing you want to worry about is an IRS form. Standard tax software asks generic questions that often fail to capture the nuance of a divorce decree or a complex inheritance. At JK Tax Service, we act as your financial partner, providing clarity and compassion. We don't just fill out forms; we look at the emotional and financial context of your life change to protect your future.
Get StartedYes. The name on your tax return must match the records held by the Social Security Administration (SSA). If you change your name due to marriage or divorce, you must file Form SS-5 with the SSA to update your card before filing your tax return, otherwise, the IRS will reject your e-file for a name mismatch.
Generally, no. The federal government does not impose an inheritance tax on the beneficiary. However, if the asset you inherit generates income (like dividends from stocks or rent from a property), that income is taxable. Additionally, withdrawals from an inherited Traditional IRA are taxed as ordinary income.
If you have owned and lived in your home as your primary residence for at least two of the five years prior to the sale, you can exclude up to $250,000 of gain from your income ($500,000 if married filing jointly). This is known as the Section 121 exclusion.
Under current tax law (post-TCJA), legal fees for divorce are generally not tax-deductible. In the past, fees related to collecting alimony or tax advice were deductible, but this itemized deduction has been suspended through 2025.