Tax Check Up – Don’t Get Caught Unprepared
Almost overnight, I can feel the difference in the air at night and the heat during the day; summer is starting to wane, and we begin to prepare for fall and winter in Maine. We certainly don’t want to get caught unprepared.
The same is true for your taxes: Don’t Get Caught Unprepared.
We are now in week 34 of 2019, and what a year it has been. A lot has changed for me this year: I started a new business, I got married to my best friend, and we sold a home. Any one of those events means I need to check my tax withholdings and be sure I am not caught unprepared at the end of the year. I do not want that large tax bill in April, and I am sure you don’t either.
If any of these life events have occurred for you this year, they can have a major impact on your taxes and it’s time to do a tax checkup:
- Got Married
- Had a Baby
- Change in Income
- New Job
- Additional Job
- Purchase or sale of a home
The IRS provides a calculator that can help you estimate what you will owe; check out the link below and follow the step by step instructions to see where you land: too much, too little, or just about right. Remember; giving the IRS too much of your money, means you are not utilizing your money in ways that benefit you during the year. Too little and you may have an unexpected bill in April.
In most cases, most changes are made on Form W-4 which you can submit to your employer anytime. If you earn money not subject to withholding you may need to pay estimated tax. If you expect to owe $1,000 or more in tax, and meet other conditions, you may need to pay this tax. You normally pay it four times a year. Use the worksheet in Form 1040-ES, Estimated Tax for Individuals, to figure the tax. For more see Publication 505, Tax Withholding and Estimated Tax. You can get it on IRS.gov/forms at any time.
So don’t get caught unprepared, do your Tax Check Up now.