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.
We 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.