July 25, 2016
Life events can have a major impact on your taxes. For that reason, it’s important to check your tax withholding mid-year in order to avoid a tax surprise at the end of the year. Here are some tips from the IRS:
You’ll complete a Form W-4 when you start a new job. Your employer will use this form to determine the amount of federal income tax to withhold from your pay. You can use the free IRS Withholding Calculator on IRS.gov to help you fill out the form.
If you earn income that is not subject to withholding you may need to pay estimated tax. Use the worksheet in Form 1040-ES, Estimated Tax for Individuals, to calculate this tax. You normally pay estimated taxes four times a year. For more information, visit https://www.irs.gov/uac/form-1040-es-estimated-tax-for-individuals-1
A change in your marital status, the birth of a child, or the purchase of a new home can change the amount of taxes you owe. You can submit a new Form W-4 to your employer at any time. For more information, visit https://www.irs.gov/individuals/did-you-know-life-events-like-marriage-birth-and-divorce-may-have-a-significant-tax-impact
Changes in Circumstances and the Health Insurance Marketplace
Advance payments of the premium tax credit help you pay for the insurance you buy through the Health Insurance Marketplace. Report changes like income and family size, and if you move out of the area covered by your plan. For more information, visit https://www.irs.gov/pub/irs-pdf/p5152.pdf
We’d be happy to help with any of these. Give us a call at 540.373.6589, or email us at firstname.lastname@example.org.
Do I still have enough to itemize?
Since before I can remember, taxpayers have had the option of reducing their income (to arrive at taxable income) by using either the standard deduction or itemized deductions. It was the one place on the tax return where most folks felt like the IRS granted them a little bit of favor…because you got to deduct whichever...
What’s going on with my exemptions under the Tax Cuts and Jobs Act (TCJA)?
Under the former law, which of course applies to the tax returns being filed for 2017, taxpayers can claim a personal exemption for themselves, their spouse (if filing jointly) and each qualifying child or relative. Each of these exemptions allowed taxpayers to reduce their taxable income by...
As we all know (if you don’t, I’m not sure what rock you’ve been sleeping under), Congress presented and the President signed in to law the Tax Cuts and Jobs Act (TCJA) on December 22, 2017. This law amends the Internal Revenue Code of 1986.
This new law affects us all. No taxpaying person in the United States will escape these changes. For some of...