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Identify personal and professional changes
When preparing for tax season, it’s important to understand how changes in your personal or professional life may affect how much you owe. For example, if you recently got married or started a family, then your filing status will likely change. That change in status might also affect the kinds of deductions and credits available to you. Deductions reduce your pre-tax income, while credits reduce the total amount of tax owed. Together, they may lower your overall bill, so they’re worth looking into in depth.
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