Summertime is a Great Time to Check Your Tax Withholding

Published: 5/5/2018 5:36:17 PM

Have you had a change in family status this year? Did you get married or will you get married? Have you welcomed a new child into the family? Have you changed jobs? Has your income changed? Each of these various life events can and will have an impact on your taxes. A review of your withholding at this time would be good to especially avoid surprises when you files your taxes next year.

To help you to make or adjust your plan, here are some suggestions:.

  1. If you start a new job, properly complete a new W-4 form. We suggest talking to your tax preparer for suggestions and assistance to claim the correct number of allowances.
  2. If you are self-employed and your business is making a profit year to date, paying some estimated taxes at this time would be a good idea so as to avoid a large payment at tax time.
  3. A change in W-4 allowances my be needed for life changes such as marriage, birth of a child, or buying a home.
  4. If your family size or income changes and you are receiving the Advance Premium Tax Credit to help cover the cost of health insurance, you need to notify the Marketplace. Properly reporting of changes ensures that you avoid getting either too much or too little financial assistance in advance.

Any questions about tax withhold and estimated tax? You can consult IRS Publication 505 or call this office (719) 336-8739.