Getting ready for tax time
Are you preparing for a refund or a bill?
If you consistently receive a refund or owe additional tax, it could be a sign that you are paying too much or too little through withholding and other payments during the year. Either way, it’s a good idea to consult your tax advisor to make sure that the amount you pay throughout the year is on track.
- Income tax is the portion of your earnings and other income that is owed to the government.
- If you receive a paycheck, a portion of your pay is generally withheld every pay period and used to pay your income taxes.
- When your tax returns are put together, how much you owe for a given year will be compared with how much you have already paid. The difference is either the amount of a refund you could expect or how much additional tax you may owe.
- If you receive a refund, consider putting the funds toward your financial goals. If you owe more, it could indicate that too little of your income is being withheld.
- Whatever your situation, consider talking with your tax advisor to make sure that your tax planning is on track throughout the year.