Try to prevent future sticker shock when filing taxes by adjusting what your employer withholds from your paycheck. Ideally, your withholdings should be as close as possible to the actual tax amount due. Having a little more money withheld every pay period is usually more manageable than trying to pay a lump sum once a year.
To make changes to your withholdings, contact your human resources department. If you consistently owe money to the IRS every April, update your Form W-4. You can work through the worksheets in the form instructions or go to irs.gov and use the Withholding Calculator. You can also withhold an additional set amount every paycheck. Consider dividing what you owed this year by the number of pay periods and have that additional amount taken out on top of what you are already withholding.
For more tips on tackling tax debt, read on.
About the Author
Mark Steber is Chief Tax Officer, responsible for key initiatives that support overall tax service delivery and quality assurance. Mark also serves as a Jackson Hewitt liaison with the Internal Revenue Service, states, and other government authorities. With almost 30 years of tax experience and deep knowledge of the federal and state tax codes, Mark is widely referenced as an expert on consumer income tax issues, especially electronic-tax and data-protection issues.
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