Even though we are in the middle of summer, we still need to keep on track with our upcoming tax filing in the spring.
If you are self-employed and own your own business, you already have tax accountants like a russalleninc.com working with you to keep you on track. Depending on whether or not your business is registered as an LLC, sole proprietorship, or other corporation, you need to stay on track of income and expenses which will determine your tax liability. And, if you are smart, you are working with someone who helps you do to just that.
People who work for other people, also need to do a mid-season check to see where they stand as far as their tax obligations go. You don’t want to end up at the end of the fiscal year with not having had enough money taken out for taxes. No one wants to do their tax forms or have them prepared and be told that they owe money to the government. So, it’s a good idea to do a check yourself or have your accountant check out where you stand at this present time. Maybe you need to make an adjustments in your allowances and have more money taken out so you can break even with the government or get a refund.
Getting a refund however, is like giving the government an interest free loan. A lot of people have the tendency to use this a way to get extra money after they file their taxes, but in reality, it is your money that you let the government borrow for free. If getting this extra money in the spring is what you’re after, it’s better to put the extra money that’s currently going to the government in the bank every payday. At least this way it can generate some interest for you – no matter how small. Something is better than nothing! Get out of the mindset that you want to give the government an interest free loan so you can get your own money back after they’ve borrowed it. Learn how to save instead.
Suppose you are not having enough taken out of every paycheck? You don’t want to find this out at the end of the tax year. Get with your accountant to get an idea of where you stand now to avoid future shock.
Perhaps you are going to break even. Wouldn’t you rather know where you stand now rather than wait until later when it’s too late to correct anything?