Tax season is upon us. Are you ready? One of the big items on your list this past year should have been to check your withholding allowance in Jamestown, ND and make sure it reflects the new tax bill. Did you get that done?
The fact is, your withholding status in Jamestown, ND greatly affects your tax bill and tax refund. Consider the following ramifications of your withholding allowance and what you should do about it.
The amount you withhold each pay period has an effect on the bottom line of your paycheck. While you want to make that check as big as possible, you don’t want to short-change your tax withholding in the process. If you do, you could end up with a significant tax bill by the end of the year.
Your withholding status determines the amount of taxes you pay throughout the year. Based on various qualifications, you are allowed certain deductions and credits for employment tax. Keeping these in mind, you must claim the correct withholding status for yourself as an individual or joint filer.
Of course, your withholding status in Jamestown, ND also affects how much your tax refund will be at the end of tax season. While a hefty refund is nice, a huge refund means you withheld too much. Your paychecks could have been bigger each pay period. Finding the right balance with your withholding allowance is key to avoid overpaying or underpaying your taxes each season.
It’s crucial to keep current with the ever-changing tax laws. This is a challenge, but it’s necessary to ensure you are making the right withholdings for each year. As laws adjust, so must your withholding status in Jamestown, ND.
How can you keep up with current tax regulations and achieve the right balance? The best way is to consult with an experienced professional. Obtaining the input of an expert will help you avoid surprises when your taxes are due. A tax preparer is always familiar with the most current tax laws and can help you avoid costly mistakes.
If you realize you’ve made a mistake with this year’s withholding allowance in Jamestown, ND, all is not lost. Contact a professional to walk you through how to handle your taxes this year, and how to adjust your withholdings for next year. You’ll discover it’s easier than you might think to get a handle on your tax allowances. With a little assistance, you can be on the right track for financial success in your future.
We’re here to help
Craig S. Hanson, CPA is Jamestown, ND’s premier full-service accounting firm. Available year-round, we offer expert accounting services, including tax preparation for businesses, partnerships, corporations, farms and individuals. Our team also offers payroll services, accounting services, tax consultation and more. Reach out to us today to schedule a consultation to review your taxes and withholdings. We can inform you of any changes that should be made and help you prepare for smoother tax seasons ahead.