Don’t leave it up to chance – check your 2017 tax withholdings while you still have some time to make changes. You can use the withholding calculator on the IRS website to see if you are paying too much or not enough. To make a change, fill out a Form W-4 and give it to your employer. You’ll end up filling out another form in early 2018 to adjust your withholding schedule.
If you make additional tax withholding via payroll deduction, you are given credit for having made the total of all withholding for the year as if you paid them in 4 equal installments regardless of the actual date they were withheld. This is important to remember if you also need to make estimated payments. Withholding tax is a good way to avoid penalties because estimated tax payments are credited to you on the day they are made. If you make them late or not in equal installments, there is a chance of penalty that can be avoided if you have the opportunity to have taxes withheld from a W2 job.
We can assist with your tax planning needs. Call us today to schedule an appointment.