irs

Are you withholding enough from your taxes?

witholdings

In a prior article, we talk about how moonlighters (those with 1099s and a W2 job) might need to withhold more taxes from their W2 role to avoid owing for the 2019 year.

They aren’t the only ones. Retirees, those with dependents, and a handful of others will need to take a look at how much they’re withholding and adjust accordingly.

Basically, if you were surprised at how low your refund was this year, you might need to adjust your withholding amount. That means if your refund was low or you owed (and never did before) you need to prioritize your withholding amount.

The time to adjust is now, right after the April 15 tax preparation deadline. The longer you wait, the more likely it is that you’ll owe or get a low tax refund amount. This can mostly be done with the IRS withholding calculator, but you’ll likely need to talk to an accountant for proper withholding.

This is for two reasons:

  • State and local taxes aren’t calculated.
  • Without a full understanding of taxes, taxpayers may not fill out the calculator correctly.

Reach out to a tax professional. They’ll help you navigate the muddy waters that were caused by the latest tax bill change.

Additionally, the IRS is cooking up a new W4 form - the form you fill out at the beginning of conventional employment (where you’d receive a W2) or to adjust your withholding amount. It will be ready for the 2020 tax season and won’t affect this year’s taxes.

If you ended up owing in this year or had a small tax refund, reach out to us. We can help ensure you’re withholding enough.

IRS Says No Decision Yet On 2018 Filing Season Dates

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

by Mike Godfrey, Tax-News.com, Washington

No date has yet been set for the filing of individual tax returns in 2018, despite rumors to the contrary, according to the Internal Revenue Service (IRS).

In a statement on November 3, 2017, the agency confirmed that it is currently updating its programming and processing systems for the coming tax year, as well as continuing to monitor legislative changes that could affect the 2018 tax filing season.

These include the possible renewal of 36 “extender” tax provisions that expired at the end of 2016, which cover renewable energy tax incentives, a couple of homeowner provisions, and a variety of miscellaneous minor provisions including tax credits for electric vehicles, special expensing allowances for media productions, and employment tax credits for Native Americans.

“The IRS anticipates it will not be at a point to announce a filing season start date until later in the calendar year,” it said in a statement. “Speculation on the internet that the IRS will begin accepting tax returns on January 22 or after the Martin Luther King Jr Day holiday in January is inaccurate and misleading; no such date has been set.”

Taxpayers are invited to provide comments on the new IRS.gov Test Homepage – Let Your Voice Be Heard

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

By Taxpayer Advocate

IRSwebsiteTesting

The IRS is a few months away from launching new look and feel to the IRS’s website (IRS.gov) and you have an opportunity to review the new Homepage about its look, content, and how easily you can find content to answer your tax questions.

You can do this through June 30, 2017 by accessing IRS.gov, navigating to Hot Topics and selecting Help us improve our home page! to provide an assessment of your experience or by entering the feedback tool directly. Testing takes less than nine minutes and your comments are confidential, anonymous and valuable to validate whether the enhancements will meet your needs.

This is a site to help you with your tax questions – please take the time to tell the IRS if it works for you!

Paul S. Herman CPA, a tax expert for individuals and businesses, is the founder of Herman & Company, CPA’s PC in White Plains, New York.  He provides guidance and strategies to improve clients’ financial well-being.

 

Any U.S. tax advice contained in the body of this website is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.