Receiving a tax bill or huge refund?
In some years you may owe the IRS money; in other years you may receive a huge refund. If this happened to you recently, it might be a good time to reassess whether you’re withholding the right amount from your paycheck. For returns filed in 2016, the average federal tax refund was $2,860. Sounds great, right? But instead of giving the government an interest-free loan, you could have been using that money throughout the year.
Examine the amount of federal and state withholding that’s being deducted from your paycheck.
I can help you determine whether the amount withheld is too low, resulting in tax due (with possible penalties), or too high, resulting in a larger than necessary tax refund. Together, we can fine-tune your withholding to ensure that you get the best result for your situation next year.
Reduce your taxable income while building a nest egg
Investing the maximum allowable contribution per year to a retirement account is a great way to reduce your taxable income. Below, are several types of accounts that are available to taxpayers.
As teachers, administrators and aides have launched into their fall semester, taxes may not be on the top of their list. However, knowing what to keep track of now can help reduce the burden at tax time. The Internal Revenue Service reminds educators that there are three key work-related tax benefits that may help them reduce what they pay in taxes.
Educators can take advantage of tax deductions for qualified expenses related to their profession. The costs many educators incur out-of-pocket include items such as classroom supplies, training and travel.
There are two methods educators can choose for deducting qualified expenses: Claiming the Educator Expense Deduction (up to $250) or, for those who itemize their deductions, claiming eligible work-related expenses as a miscellaneous deduction on Schedule A.
A third key benefit enables many teachers and other educators to take advantage of various education tax benefits for their ongoing educational pursuits, especially the Lifetime Learning Credit or, in some instances depending on their circumstances, the American Opportunity Tax Credit.
The past few weeks have been beyond trying on families, homes and the earth as we have seen our shorelines hammered by hurricanes and our lands rocked by quakes. From Harvey to Irma and beyond, we are all finding ways to either piece our lives back together or to send help any way we can.
Whatever place you find yourself in, the IRS is going to leave it's mark and it helps to know this as early on as possible. Read and follow the links below that the IRS offers for the proper information.