This month is our Guest Blogger for March is Wendy Uken. Wendy is a designated agent for the IRS and a QuickBooks Pro Advisor. She is also the co-founder of the Gonzales Tax Group in California. You can visit her website at http://www.GonzalezTaxGroup.com.
The first quarter of the year is almost at a close, but the updated tax code is just starting to take effect. If you haven’t had a chance to update your W4 with your employer here are a few reasons to do so immediately:
Keep more money in your pocket – the new tax code lowers the tax rate for almost all income brackets. In order to take advantage of this change you need to complete a new W4 so that your employer can calculate how much to withhold for taxes.
Keep more money in your pocket (Yes! 2 Different Reasons!) – If you’re continuously getting large refunds this means that your withholdings are much higher than they should be. If this is the case, you’re essentially giving the IRS an interest-free loan. Why give the IRS an interest-free loan when you could be using that money for your family? Mortgage/Rent? Or maybe even to start a side-business?
Prevent potential tax liabilities – If you’re having the opposite problem and you’re continuously owing taxes it means that you’re not having enough taxes withheld. Rectify this before it becomes unmanageable by completing a new W4.
Of course, this is general information meant to point you in the right direction and it shouldn’t be construed as advice specific to your situation. You should always consult a professional to ensure you apply the tax code in a manner appropriate to your situation. As Enrolled Agents (IRS Designation) we at Gonzalez Tax Group can represent individuals and businesses in all 50 states and we would be happy to work with you directly. Simply schedule an appointment or give us a call at 818-539-7014.
Enrolled Agent (IRS Designation) & QuickBooks ProAdvisor
Co-Founder of Gonzalez Tax Group