Life Changes Can Require A Tax Tune Up!
Summer can be a time for life changes. Marriage, a school-break job or entrepreneurial venture, a move to a new home – all of these major events call for tax planning. The good news is a few simple steps will get you started, even if you feel your current circumstances limit the time you have to devote to your taxes.
For example, when you marry or start a new job, updating Form W-4, Employee’s Withholding Allowance Certificate, will help you determine the correct amount of withholding that reflects the change in your income and deductions. If you started your own business, you may need to calculate and pay estimated tax. Buying a home could affect the amount of deductions you can claim, which in turn can affect the amount of tax you may owe. And all of those events may affect the amount of your advance premium tax credit. The credit is paid to your insurer to lower your premium. Changes can mean you receive too much and have to pay back the extra at tax time.
If you’d like help adjusting your tax plan, contact us at 832-303-3995 or info@byronrileycpa.com