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 email@example.com.
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