July 26, 2016
Tax Tip: Rules for Home Office Deductions

Prevent Tax Time Surprises With a Summer Adjustment

Prevent Tax Time Surprises With a Summer Adjustment “Prevent Tax Time Surprises”, If you’re putting your home on the market, you may be able to avoid paying taxes on some of your capital gains. Here’s what IRS regulations say:When filing their taxes, many taxpayers are surprised by unexpectedly large tax bills or refunds. Take the time this summer to adjust your with holdings to bring your estimated taxes in line with what you actually owe. If you are still working, speak to your tax advisor or use the online IRS Withholding Calculator to confirm that your employer is withholding the correct amount from each paycheck. New jobs or important life events like marriage or the birth of a child can trigger changes to your withholding. If you receive significant income that’s not subject to withholding (such as investment or rental income), work with a tax advisor to determine whether you need to make quarterly estimated tax payments. For more information about adjusting withholdings or other tax issues, consult a tax professional in your area or see IRS Publication 505, “Tax Withholding and Estimated Tax.” Tip courtesy of IRS.gov