My photo
Columbus & Central Ohio, United States
DeLena Ciamacco is a well-known, respected Top Producing Realtor in Central Ohio. Her myriad of accomplishments, recognition, and professional credentials as they relate to Real Estate, make her a perfect individual to provide insight to the masses on all aspects of Real Estate sales. Her creativity and honest approach to marketing Real Estate has enabled her to succeed in her career. DeLena’s philosophy is “An educated and well prepared Buyer or Seller is a smart Buyer or Seller”. Her desire is to inform the public, by pulling from her 20+ years of Real Estate sales & Marketing, what is necessary to get to a successful closing in these challenging times.

Tuesday, January 10, 2017

How to avoid a big tax bill or fine-tune your refund





Remember the IRS Form W-4, Employee's Withholding Allowance Certificate, your employer asked you to complete on your first day? "The number of personal allowances you designate on Form W-4 determines the amount of federal income tax withheld from each paycheck," explains TaxACT spokesperson Jessi Dolmage. "The total amount withheld for the year is credited against your income tax liability."



You can modify your withholding at any time of year by submitting a new Form W-4 to your employer. In order to minimize taxes owed at the time of filing, set your allowances to zero on your W-4. To increase take-home pay but potentially owe more money at tax time, increase your allowances.



Each of the following should be counted as one allowance:



* Yourself (if no one can claim you as a dependent on a tax return)



* Each dependent



* You claim the child tax or child and dependent care credits on your tax return



* Your tax return filing status is Head of Household



If you have income from multiple jobs or your spouse works, withholding is usually the most accurate when counting all allowances on the W-4 for the highest paying job. Then claim zero allowances on W-4s for all other jobs.



Fortunately, there are free and easy solutions to help you calculate the appropriate withholding. The IRS offers Publication 505 and a withholding calculator at www.irs.gov.



TaxACT also offers a free withholding calculator. "After registering for TaxACT Free Federal Edition, click on the 'Next Year' tab to answer simple questions about your allowances," says Dolmage. "TaxACT will also complete a new Form W-4 that you can print and give to your employer."



Self-employed individuals should calculate net income and estimated taxes owed each quarter. Submit your quarterly estimated taxes along with Form 1040-ES, Estimated Tax for Individuals.



To adjust withholding for unemployment or social security payments, give Form W-4V to the payer. Submit Form W-4P to payers of pension, annuity and other deferred compensation.



In addition to reviewing your withholding when you get a new job, it's important to review your withholding whenever experiencing a major life change, such as:



* Marriage or divorce



* Birth or adoption



* Increase or decrease in income e.g., you get a part-time weekend job or spouse becomes stay-at-home parent



* Buy a house



* Retirement



* Change in interest or dividend income



* Change in itemized deductions



If you live in an income-taxing state and want to adjust your state withholding, you'll need to complete the appropriate withholding form for your state.



For more information about withholding and Form W-4, visit www.irs.gov. Learn more about TaxACT's free federal solution at www.taxact.com.



No comments:

Post a Comment

There was an error in this gadget
real estate forums Real Estate Blogs Directory - Directory of real estate blogs and blogs of industries affiliated with and serving the real estate industry. DeLena Ciamacco on Zillow Realtor ratings and reviews of Delena Ciamacco DeLena Ciamacco (RE/MAX Connection, Realtors): Real Estate Agent in Westerville, OH Westerville Real Estate Real Estate agents Worldwide real estate companies directory and property buyers and sellers guide.

Buying-A-Home.com - Home Buyer Guide Information about common buyer problems every first time home buyer needs to know! Property Directory. We are listed under Residential Estate Agents Real Estate Agent Directory