Review Your Taxes

Have you ever had a tax season when you received a bigger refund than expected, or you found out that you owe a lot more than you thought you would? Were you able to pinpoint the reason for the fluctuation… maybe you married, had a child, or perhaps a change in income? Life events can have major effects on your taxes; however, reviewing your previous and current tax situations regularly can make the tax you pay closer to the amount you actually owe. Here are some tips mentioned by the IRS.

New Job. When starting a new job, you’re required to fill out a Form W-4, Employee’s Withholding Allowance Certificate, and return it to your employer. This form is used by your employer in order to figure out the amount of federal income tax to withhold from your pay. The IRS offers a Withholding Calculator, which can help you fill out the form.

Estimated Tax. If you’re income is not subject to withholdings, you may need to pay an estimated tax. This can include income from self-employment, interest, dividends, or rent. If you’re expecting to pay more than $1,000 in taxes, and meet other criteria, you may need to pay this tax. And it’s normally paid about four times a year.

If you plan on filing an extension, you can also pay your estimated tax at the same time with ExpressExtension. Your payment is accepted online by Electronic Funds Withdrawal (EFW) using your checking or savings account information.

Life Events. You should be aware of when you need to change your Form W-4 or the amount of estimated tax you pay when certain life events occur. For example, a change in marital status, a birth of a child, or buying a new home can change the amount of taxes you owe. In common cases, you can simply submit a new Form W-4 at anytime.

Changes in Circumstances. It is very important that you report any changes in circumstances, like a change in income or family size, to your Health Insurance Marketplace. You should also let Marketplace know if you’ve moved outside the area covered by your plan. Advance payments of the premium tax credit help you pay for the insurance you receive from the Health Insurance Marketplace. By reporting changes, you can help yourself get the proper type and amount of financial assistance so you can avoid getting too much or too little.

Stay on top of your tax season by looking over your current year, and your last year, taxes every so often. By doing so, you can become more prepared as the tax season becomes closer. As you practice proper tax preparations, you may realize other information that’s needed or that needs to be acquired. A situation such as that may call for an extension to be filed for even more time and preparation.

With ExpressExtension, we offer a safe, secure, and accurate e-filing process that will save you time and money, backed by a team of expert professionals ready to assist at any step of the way. As mentioned earlier, we also offer the option for you to pay your estimated taxes while e-filing your tax extension. You can also e-file quickly and easily by downloading the FREE Express 4868 App for both iOS and Android devices.

For assistance with e-filing your extension, contact our live professionals from our Rock Hill, South Carolina office. We are available by phone (803-514-5155, Monday through Friday from 9am to 6pm EST), email ([email protected]), or live chat (www.expressextension.com).