Hello Fellow Taxpayers,
Even if you are not a college basketball fan, you may have noticed that the NCAA is starting their tournament to crown the 2018/2019 college basketball champions. Schools that win their conference (and there a load of them) automatically get a bid to the tournament. There is a committee that goes behind closed doors (not unlike a Conclave) and picks the remaining schools to come to a full 64 colleges. It is like selecting a baseball all-star team after the fans have made their choices. Some schools will feel slighted while other (consensus) undeserving teams are chosen. You cannot please everyone.
So where am I going with this? It’s common knowledge that the IRS changed their withholding tables to “supposedly” be in line with the new tax laws. However, many of my clients (and also my fellow tax pros’) have found that tax-refunds are lower and that taxes dues are higher. Getting a refund is great, but remember, as I have mentioned in prior emails, it is your own money. Owing to the IRS when you expected a refund is not a great feeling, for either you or me. Believe me, when I say, I feel bad when things do not go the way we anticipated they would. Remember, it was Congress (actually, their tax writers) that went behind closed doors (again, not unlike the Conclave), that made these rules.
If you have not filed your return yet, it is better to prepare it early, so you have time to swallow the news if it’s not what you expect.
So like the 64 colleges in the NCAA are doing (getting prepared), so should you. Let’s get those returns filed and work on paying the IRS.
So until next time,
Jeffrey “March Madness Rocks” Schneider