Friday, May 4, 2012
Getting your Taxes in order now.
So this year because my taxes didn’t correctly adjust till late last year the amounts were not coming out correctly from my second job. Well before I could do anything it was too late. I just paid the piper this year and will save up to pay myself back later. You might think this post is a touch early but when you think about it we are in month 5 of 12. We just got done with tax season and are about half way through the year. When it comes to money the best way to save is slow and early. Do not get behind and have to dip into savings. Make the choice to put away now or pay the government more now slowly then get it back later. I know it stinks, we over pay the government, then they have to pay us back but trust me it is better than owing them. Here are some tips for everyone for the up coming tax year.
So before you do this....
1) Check your paycheck in the beginning of the year and every few after to make sure the correct Fed/State taxes are being deducted.
2) Make sure the allowances are correct and that you are taking any extra out if you feel that you will need it.
3) Come June or July do your taxes as a prep. Take your paycheck and double the amount you made so far and double the taxes. This will give you an idea about what you will get back or owe come year end. Doing your taxes mid year will prep you and if you see you are short you can adjust them now and not in the fall or year end when it is to late.
4) If you take out extra every paycheck it will be easier than trying to pull funds together when you have to pay.
Mainly people that work more than one job get hit hard they make good money and the taxes usually aren’t taken out as hard. Make sure you are taking out enough. When you do them the next year it is better to find you are getting money back because you worked for it all year rather than have to make up for it. The IRS will allow you to pay in installments but there will be interest.
If you are a single parent and you rotate your child make sure you not whose year it is to claim them. If it is your year make sure you claim them it is your right. That child write off will help you in the long run and if you are suppose to rotate years then use your right to do so. You can also expense other things like daycare to help you out.
The problem is people pay attention to taxes from Jan-April, and that is only because they have to get them done! Pay attention to them all year, check your deductions and make sure when the year ends you will have taken out enough to pay the piper! So look at your taxes this July and double the amounts then run the numbers and see what the outcome is. Add in a child if so but this will give you a great idea of how you will end up come next tax season. If you owed last year but make the right moves and choices you will make out on top. Remember it is easier to take out a little at a time for 26 pay periods/52 depending on how you get paid than it is to pay a lot when you may not have it.
This year I have taken extra money out for both jobs as well as made sure my deductions are at the best rate to get back. I better get money back, plus I get my daughter this year so I know I will be okay. Make sure you are proactive and then come tax season you won’t feel caught off guard.
Don't get stuck... doing this!
You are never alone…