How to Avoid Owing Taxes in the Future
They’re the dreaded words that no one wants to hear: “You owe on your taxes.” Not only can this derail your plans, but you may also be unprepared to pay. While you can’t escape forking over your hard earned cash to the IRS, there are steps you can take to avoid paying in the future. Here’s how to keep more money in your pocket and avoid a surprise tax bill.
- Make sure that enough is being withheld from your paycheck and submit an updated W-4 if changes need to be made.
- Check your deductibles. Claiming too much, or too little could be the culprit.
- File on time to avoid late penalties. If you can’t get your taxes done on time, request an extension.
- Double check your taxes and ensure everything is correct before submitting. A slight mistake will end up costing you money.
- Kids move out, make upgrades to your home, or have extra income coming your way from stock sales? These small changes can add up.
Carefully managing your estimated tax payments can help you avoid having a hefty tax bill. We can take a look at your previous year’s taxes to see if more deductibles can be taken out, so you break even. Give us a call at (845) 342-5818 to schedule an appointment.