Tax season can be a time of great anticipation for millions of Americans with dreams of a nice, big refund check coming soon. Yet this year, many Americans may find themselves surprised and coming up short on their refunds.
Many taxpayers have been shocked that this year, instead of a big tax refund check arriving in the mail, they are being saddled with an unexpected bill from Uncle Sam. The combination of recent tax law changes and updated employer withholding tables has left individuals scrambling to figure out how to pay their new IRS obligations due at filing time.
If you’re worried about a looming tax bill, don’t fear. There are measures to ensure your taxes don’t unexpectedly balloon. Use budgeting tips to manage your finances effectively. Know what to do when the worst happens. These strategies will keep your wallet happy throughout the year!
The Earlier the Better
Ignoring an IRS debt could ultimately result in consequences. It is in your best interest to be aware of any outstanding amount as soon as possible, providing time for tax planning and sourcing the necessary funds. Don’t let late payments rack up and cause costly penalties and interest. Be proactive about filing your taxes so you’ll have a good idea of what will be owed and what is needed to pay on time.
Pay Attention to Your Paychecks
With the recent changes in tax law, your paychecks may have grown more generous – but don’t get too excited! They could mean less of a refund or an unexpected bill when you file. Make sure to stay informed and plan ahead so unpleasant surprises won’t come back to haunt you this filing season.
Throughout the year, monitor your paychecks and ensure that the right amount is withheld. If you see a decrease in federal taxes being taken out of each paycheck, adjust this with your employer immediately – even though it may mean taking home less every month. Doing so can help protect you from federal and state tax debts and penalties later!
Run Your Numbers Before
With just your final paycheck from last year and a few additional details, you can gain insight into what kind of tax refund or balance due to expecting come filing season. It pays to take the time for preparation now so there are no unpleasant surprises later! However, please note that you should never use your 2022 final paycheck to prepare your return. You’ll need the actual W-2 from your employer in order to file a complete and accurate return.
To prepare for tax season, compile all necessary records of your income, credits, and deductions. Estimate what you owe using these records. Use reliable tax preparation software or an everyday calculator to understand your financial situation better.
Know You Have Back Taxes or Will Owe A Lot?
Ignoring a tax bill is not an option; the IRS will always come knocking. Settling it quickly can save you from further financial trouble, so don’t delay. Your taxes may burden your wallet now, but they can take hefty chunks out of your future if left unresolved!
Dealing with the IRS can be a daunting experience for many taxpayers. Even getting the IRS on the phone these days is nearly impossible. Without proper guidance, negotiating your tax problem is like going to court without a lawyer—it’s not a wise move!
Struggling with tax burdens from the IRS or State? Our experienced team knows the IRSs’ “ins and outs”, and knows how to navigate the IRS maze. We’re here to assist you in finding a resolution that works best for your unique situation. Take advantage of our knowledge and expertise by booking an appointment with us today – take control of your taxes, and your life, before they become unmanageable!
