You can avoid a surprise tax bill next April by taking some time now to review your withholdings and estimated tax payments. This is increasingly important if you’ve recently experienced a major change in your life – new job, birth of a child, or purchased a home. These events materially change the amount of taxes you’ll owe in April.
Things you can do now:
- The IRS has a great Withholding Calculator you can utilize when completing/updating your Form W-4.
- If you operate a business and are required to make quarterly tax estimates, take some time now to review your business profitability for the year and adjust those estimated payments as necessary.
- Consult with your tax advisor to review your specific situation.
- Read more information here – IRS Summertime Tax Tip 2013-25
This is just a small sample of tasks that can be performed this time of year to avoid surprises in April. We would enjoy helping you though this process. Please contact us at 616.393.0398.
Image courtesy 401(K) 2012