The Internal Revenue Service (IRS) has issued a warning to taxpayers about the importance of reviewing their tax withholding before the end of 2023. This step is considered crucial to avoid surprises when filing taxes next year.
Avoiding Tax Surprises:
Although it is preferable to verify withholding at the beginning of the year, adjusting it in the last weeks of 2023 could prevent unexpected results when filing the return. This action can avoid surprises like a significant refund or an outstanding tax balance.
IRS Recommendations:
The IRS urges those who have not recently reviewed their withholding to do so as soon as possible to make any necessary adjustments. For this, it offers different tools and methods.
Tax Withholding Estimator:
The Tax Withholding Estimator is a tool that allows workers, retirees, self-employed workers and other taxpayers to calculate the correct amount of taxes they should have withheld. Helps avoid excessive refunds or outstanding tax balances.
Estimated Quarterly Tax Payments:
The IRS reminds those who earn income not subject to withholding, such as rental income or self-employment, to consider making quarterly estimated tax payments. This avoids outstanding tax balances or penalties when filing.
Life Event Adjustments:
Events such as marriages, births, or job loss may require adjustments to withholding. The IRS offers resources and publications to guide taxpayers in these circumstances.
Refunds and Electronic Filing:
The IRS warns that a refund is not guaranteed. Adequate withholding increases take-home pay instead of withholding excess and receiving it as a tax refund. Additionally, electronic filing and Direct Deposit are faster methods for receiving refunds.
The IRS emphasizes the importance of reviewing and adjusting tax withholding before the end of the year to avoid surprises or complications when filing taxes. Forecasting and early correction are key to proper fiscal management.
If you need help with the review of your tax withholding, do not hesitate to contact us at the following numbers Charlotte 704 569-1911 Monroe 704 635-7566 or come to one of our offices, we are at 3721 Eastway Dr. Charlotte, NC 28205 and at 1503 E Franklin St. Monroe, NC 28112
