Are you withholding enough?
It’s never fun to learn you owe more taxes in April. The problem is that this can be prevented with a little tax planning. Here’s what to look for –
-
Check to see how much Federal and State withholding is being taken out of your paycheck. If the percentage is much lower than your marginal tax rate, you will likely owe more money.
-
CDs and fixed income investments are paying a high interest rate these days, you may need to make additional estimated tax payments to cover the interest income.
-
Stocks may end up taking a turn if unemployment continues higher, any sales you make to lock in gains should also prompt you to go ahead and make an estimated tax payment.
Summer is the time to do a checkup on your withholding to make sure there are NO SURPRISES next tax season. If you would like us to help you with a quick check or a more in depth tax plan, please call the office anytime!