November 15, 2016

Act Now to Avoid Tax-Time Surprises

Avoid tax-time surprises of large refunds or unexpected tax bills by bringing your estimated taxes in line with what you will actually owe: Check your withholding. If you’re an employee, work with your tax professional or use the IRS Withholding Calculator to check that your withholding is correct. Report any important life changes. If you’ve recently gotten married, had a child, gotten divorced, or added other dependents, you may need to adjust your withholding. If you have changed your name, make sure to file the change with the Social Security Administration to avoid errors at tax time. Have multiple sources of income? If you work multiple jobs or receive reportable income from other sources, you may need to make estimated tax payments. Consult your tax professional for help. To learn more about adjusting your tax withholding or paying estimated taxes, ask your tax professional or check Publication 505, Tax Withholding and Estimated Tax. Tip courtesy of IRS.gov