Check your tax withholding now to avoid a surprise at tax time

IRS Issue Number: Tax Reform Tax Tip 2019-108                                              Taxpayers can follow these three steps to use new Tax Withholding Estimator

All taxpayers should use the new Tax Withholding Estimator to do a Paycheck Checkup. This tool helps people make sure their employers are taking out the right amount of tax from the employee’s paychecks. The money withheld from an employee’s paychecks throughout the year should cover the amount of tax they owe.

Taxpayers who haven’t yet checked their withholding can follow these simple steps for using the estimator. Results will include a recommendation of whether the taxpayer should consider submitting a new Form W-4, Employee’s Withholding Allowance Certificate, to any of their employers.

Step 1: Gather documents.
Before beginning, taxpayers should have a copy of their most recent pay stub and tax return. Taxpayers should go to the main Tax Withholding Estimator page on IRS.gov. Once there, they should carefully read all information and click the blue Tax Withholding Estimator button.

Step 2: Answer the questions.
Users will answer a series of questions about their specific tax situation. When they complete each section, they click the blue “Next” button that takes them to the next section.

Step 3: Review the results.
Taxpayers use the estimator’s results to determine if they need to complete a new Form W-4, which they submit to their employer, not to the IRS. The tool helps the user target a tax due amount close to zero or a refund amount.

 Tax Withholding Estimator.  https://go.usa.gov/xySzP

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Early filers with a tax bill have time to make a plan.

When you’re facing an income tax bill instead of a refund, it’s natural to put off filing as long as possible. But if you go ahead and fill out your tax forms and file them, you’ll know exactly how much you have to pay—and you won’t have to pay in full until the April filing deadline.
The more time you have to come up with the money, the less likely you are to bust your budget or drain your emergency fund. So, don’t spend the first part of the year with your head in the sand. Get the facts about what you owe, make your plan, and get that tax bill out of the way.

Tax Filing Season 2019

Tax Filing Season

 

IR-2019-01, January 7, 2019

The Internal Revenue Service will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.

The filing deadline to submit 2018 tax returns is Monday, April 15, 2019

Tax professionals will be accepting and preparing tax returns before Jan. 28 and then will submit the returns when the IRS systems open later this month.

Contact Deb at Balanced Book Taxes today to schedule your tax appointment.