Tax Summer Tips - Tricks!!
Summertime tax tips and other important information
Summer tax review: Did you get a larger refund than you expected? Did you owe more than you planned? Maybe it is time to take a few moments to sit down with your tax advisor and do a review of your current tax situation to see what can be done to minimize that Tax Day Surprise. Did you get married, have a child, or have a change in your income? Some of these life events can have a major effect on your taxes. Here are some key IRS tips that you can use to do some of these calculations on your own:
- New Job. When you start a new job, you must fill out a Form W-4, Employee's Withholding Allowance Certificate and give it to your employer. Your employer will use the form to figure the amount of federal income tax to withhold from your pay. Use the IRS Withholding Calculator on IRS.gov to help you fill out the form. This tool is easy to use and it’s available 24/7.
- Estimated Tax. If you earn income that is not subject to withholding you may need to pay estimated tax. This may include income such as self-employment, interest, dividends or rent. If you expect to owe a thousand dollars 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.
- Life Events. Check to see if you need to change your Form W-4 or change the amount of estimated tax you pay when certain life events take place. A change in your marital status, the birth of a child or buying a new home can change the amount of taxes you owe. In most cases, you can submit a new Form W–4 to your employer anytime.
- Changes in Circumstances. If you are receiving advance payments of the premium tax credit, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.
If you find these tools confusing, or prefer a one-on-one, please just give us a call and we’re happy to schedule an appointment for a one-on-one review of your situation.
- I’ve filed an extension. Can you tell me when my tax return is now due? Extensions on personal returns (1040) grant you till October 15 to file your return. Certain business returns (1120; 1120S and 1065) are due on September 15. We are working hard to get any returns still in the office completed in a timely basis.
- If I haven’t provided you with my tax preparation documents, when do you need them to file my taxes by the final deadline? If you have a business return (with a September 15 deadline), we needed to have your information before August 15. Although we can’t guarantee a timely filing at this point – please get us your information as soon as possible so that we can get it in the queue. If you have still not brought in your information for your personal return (1040), please get it to us by September 1 in order to insure a timely filing.
- When do I have to send in my next estimated payment? Current year tax estimates are due: April 15; June 15; September 15, and January 15 of next year). We typically send out estimates about two weeks before the due date. Please watch your mail, and if you haven’t received your estimate vouchers by September 7 – let us know and we’ll be happy to send you a new copy. Remember – if you have moved, it is important that you provide us with your current address!
- Where is my refund? If you filed your tax return over eight weeks ago, and have not received your refund, you will need to contact the IRS directly at 1-800-829-1040. If it has been less than eight weeks, and you just want to check for updated status information from the IRS, please use their “Where’s My Refund” tool found at irs.gov.
Your friends at Eads & Associates, Inc.