You may be able to prepare now for the tax costs of any life changes this year. Key take a ways Evaluate the tax impact of life changes such as a raise, a new job, marriage, divorce, a new baby, or a child going to college or leaving home. Check your withholding on your paycheck and estimated tax payments to avoid paying too much or too little. See if you can contribute more to your 401(k), 457, or 403(b). It is one of the most effective ways to help lower your taxable income