With half the year gone, it’s time for a paycheck checkup so you’re not unpleasantly surprised at tax time!
Remember that last year, due to sweeping tax law changes, many taxpayers received a much smaller refund or owed additional tax that they were not expecting. Persons or families with multiple sources of income tend to be the most vulnerable to these outcomes, but the changes can still affect those with a single source of income. Click the link below for a few things you’ll need to get together, then head over to the IRS withholding calculator to do a quick check to be sure your withholding is where you want it to be. Please note that this link is for withholding only, and not estimated taxes or self-employment tax. If you’re unsure what these are, you probably aren’t subject to them.
For business owners, those with rental properties and others with alternate sources of income, now is the time to take a good look at how the year is shaping up for you. Compare the first half of this year to that of last year to see if you need to be paying more taxes in to avoid underpayment penalties. Or possibly, you can even reduce those tax payments you’re already making and make use of the money for yourself right now.
For any questions, or if you need a more robust estimate, don’t hesitate to contact us!
-Heritage Accounting and Tax Services