Plan for Your Tax Withholdings Ahead of Next Year’s Filing Deadline

To minimize your tax liabilities, it is important to remember to check on your tax withholdings often and regularly to avoid unexpected issues when filing your tax returns. The Internal Revenue Service recently released a free online tool for taxpayers to utilize in managing their taxes when receiving income. The Tax Withholding Estimator can help determine if taxpayers need to submit an updated W-4 Form and/or Employee’s Withholding Certificate with their employer to voluntarily adjust how much taxes are deducted from paychecks throughout the tax year. This tool should be used at least once a year and could include every quarter if taxpayer income fluctuates often throughout the year as a W-4 employee. Self-employed taxpayers could also find value in using the Tax Withholding Estimator in determining how much tax should be deducted from earnings and placed aside ahead of tax filing season.

To determine an effective tax withholding estimate, it is important to gather the following documents: all income statements for yourself and spouse (if filing jointly), any data as it relates to earnings, and your most recently filed income tax return. If you are considered a taxpayer with a complex tax situation, please refer to Publication 505, Tax Withholding and Estimated Tax, for more information and instructions that may not be explained by using the tax withholding estimator.

If you have any questions regarding your state and/or federal tax return(s) or received a notice from the IRS, FTB, EDD or any other regulatory agency, please call or email Wilson Tax Law Group, APLC, to setup a consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Tel: (949) 397-2292 (Newport Beach Office) 

Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.