Will You Owe Taxes? Now Is a Good Time to Check and Start Tax Planning!
Tax season may still feel a long way off, but now is actually a great time to start tax planning and to ask an important question:
Am I going to owe taxes this year?
It’s much better to have an idea now than to find out when your return is being prepared. And if something looks off, there’s still time left in the year to make an adjustment.
Learn more about why planning ahead is a great idea!
Take a Quick Look at Your Paycheck
A good place to start is your most recent pay stub. Take a look at how much federal and state income tax has been withheld so far this year.
If you’re working the same job, earning about the same amount, and haven’t had many changes, you may be right on track. But life doesn’t always stay the same from one tax year to the next.
Maybe you got a raise. Maybe you changed jobs. Maybe your spouse went back to work. Or maybe you started earning a little extra money on the side.
Those changes can make a difference when tax time rolls around.
Has Anything Changed This Year?
Think back to the beginning of the year. Has your income or household situation changed?
It may be worth taking a closer look at your taxes if you:
Changed jobs or received a raise or bonus
Work more than one job
Are married and both spouses work
Started a side business or picked up contract work
Received more interest or investment income than usual
Sold stocks, land, property, or other investments
Started taking retirement income
Had a change in your household or dependents
None of these automatically mean you’re going to owe. They’re simply good reasons to check or to schedule a tax planning appointment. Aue And Company has multiple templates to use to track other useful information you will want during tax season.
Don't Forget Income That Doesn't Have Taxes Taken Out
This is one that can sneak up on people.
Not every type of income has taxes automatically withheld. Side jobs, self-employment income, investment income, rental income, and certain retirement distributions are a few examples of reasons you may want to consider tax planning.
If you’ve had additional income this year and haven’t paid taxes on it yet, it’s worth finding out whether you should make an estimated payment or adjust your withholding before the end of the year.
Need to update your W-4 or other tax forms? Click here.
So, How Do You Know If You're on Track?
You don’t have to guess, and you don’t have to wait until tax season.
We can take a look at your year-to-date income, what you’ve already paid in, and any changes you’ve had during the year. From there, we can get a better idea of whether you’re on track, may owe, or might be paying in more than necessary.
Sometimes everything looks just fine.
Other times, a small adjustment now can help prevent a much bigger surprise later. Check out these credits and adjustments individuals can claim, should they be eligible.
Now Is a Good Time for a Tax Checkup
We know taxes probably aren’t at the top of your mind this time of year. But spending a little time on them now can make things easier when tax season gets here.
If you’ve had changes this year, have income that doesn’t have taxes withheld, or just want some peace of mind about where you stand, give Aue And Company a call.
We’d be happy to take a look and help you plan ahead. After all, when it comes to taxes, a heads-up is always better than a surprise.
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