Will you owe taxes this year? A little tax planning goes a long way!
The IRS urges taxpayers to promptly review their tax withholding to avoid surprises, whether in the form of significant refunds or balances due when filing taxes next year. The IRS has provided tools to assist with this process.
The Tax Withholding Estimator helps taxpayers determine if they have too much income tax withheld and provides guidance on adjusting their withholding or making estimated tax payments to avoid tax bills during the 2023 tax filing.
For more advanced scenarios, a tax advisor can help with tax planning. Instead of paying more in tax, many taxpayers can save on taxes with a tax planner. The tax specialists at BA Tax Pros are here to help, so contact us to schedule your tax planning meeting today.
For options to pay, taxes are usually paid throughout the year, with employers deducting income tax from employees' salaries and forwarding it to the IRS. However, approximately 70-percent of taxpayers withhold an excess amount, resulting in refunds. The IRS advises individuals earning non-withheld income, like rental properties, gig economy work or self-employment to consider making quarterly estimated tax payments. Taxpayers can make payments using Form 1040-ES by mail, pay online,via phone or the IRS2Go app. Taxpayers can also manage payments through their Online Account on IRS.gov./account.