Here’s something the public generally turns a blind eye towards… your yearly tax changes. Have you used the Tax Withholding Calculator to ensure your employer is withholding the correct amount from your paychecks? If not, it might be time to check in with your enrolled agent and make sure. You may owe more than you think, or better yet, you may be entitled to a greater return.
Paycheck Checkups are particularly critical for people who:
• Have a two-income family.
• Have two or more jobs at the same time or only work part of the year.
• Claim credits like the child tax credit.
• Have dependents age 17 or older.
• Itemized deductions in 2017.
• Have a high income or a complex tax return.
• Have a large tax refund or tax bill for 2017.
There are plenty of opportunities to be taken advantage of with the new tax changes. Did you know that in 2018, the Child Tax Credit was increased from $1,000 to $2,000 per qualifying child, leaving families with a significantly greater tax return? With all the expenses associated with having a child, you don’t want to be giving the IRS more of your paycheck than you need to. It may be worth adjusting your tax withholding if you have a newborn or if you have adopted a child. Personal and financial events, such as getting married, sending a child off to college, or retiring, happen throughout the year and can also have a major impact on your taxes. If you wait until the end of the year to factor those changes into your tax planning, it might be too late.
Even with no significant changes to your life/income, you should still think about your checkup. You might look into ways you can save more toward retirement, gift money to your children and grandchildren to remove it from your estate, or manage your charitable giving to increase its tax benefits and value to beneficiaries. A little tax planning now can save a lot of headaches in April—and maybe for years to come.
Most taxpayers don’t itemize deductions, but the folks who do could find they are not paying enough tax through withholding. The tax law change of 2018 limited some popular tax deductions they claim, leading to a serious tax bill/penalty. It is crucial to take the extra step and have your enrolled agent help w
ith your tax checkup.
Planning and Preparing for Checkup
To ensure you’re fully prepared for your appointment, you’ll need the following handy:
● A recent pay stub (or multiple, if accessible)
● Most recent tax return
● Your W-2 form
The Process
Your enrolled agent will use a Tax Withholding Calculator tool to review and change your W-4 for 2019 (if applicable). The EA will also fill out the Employee’s Withholding Allowance Certificate to make sure your employer is withholding the correct amount of federal income tax from your paycheck.
The process can be a little intimidating, but take the leap and begin to save. We are always here to help!
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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax & Accounting as well as an Enrolled Agent and a Certified Tax Resolution Specialist.
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Now What? I Got A Tax Notice From The IRS. Help! Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.
The book is available in paperback and ebook on https://Amazon.com
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For more on SFS Tax Problem Solutions, visit: http://sfstaxproblemsolutions.com/
For more on SFS Tax & Accounting Services, visit https://sfstaxacct.com/
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738 Colorado Avenue Stuart, FL 34994
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Phone: 772-337-1040
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https://twitter.com/SFSTax/
https://linkedin.com/company/sfs-tax-problem-solutions
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