Give heed to tax changes

Life changes can bring celebrations and condolences, and they often bring tax changes, too. Pay attention to those, or risk ending up with headaches or extra costs.

For example, a new job means a W-4 form. Fill it out carefully, lest you have too much or too little withheld. If you have substantial other income, such as interest and dividends, adjust withholding accordingly. If you're paying off a mortgage or student loans, or otherwise can itemize deductions, adjust withholding allowances upward to reflect lower tax liability.

When changing jobs, it's often best to transfer your retirement assets, such as a pension or 401(k) plan, to a traditional IRA, in which you can control the investments. You also might be able to move those assets from your old employer to your new one. If receiving retirement payments, review your withholding again and determine whether your tax bracket will change.

Getting married introduces the "marriage penalty," in which, if both spouses work, the couple may pay more in taxes than two single people with the same incomes. So revise your withholding status immediately.

Divorcing? Adjust withholding to reflect your new filing status. With the splitting of marital assets, your other income (such as interest and dividends) will change, and mortgage interest may be divided or eliminated.

To learn more, visit fool.com/taxes or IRS.gov. The IRS website even has a W-4 calculator tool.