2023 Tax Calendar
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When you filed your federal tax return this year, were you surprised to find you owed money? You might want to change your withholding so that this doesn’t happen again next year. You may even want to adjust your withholding if you got a big refund. Receiving a tax refund essentially means you’re giving the government an interest-free loan.
Taxpayers should periodically review their tax situations and adjust withholding, if appropriate.
The Internal Revenue Service (IRS) has a withholding calculator to assist you in conducting a paycheck checkup. The calculator reflects tax law changes in areas such as available itemized deductions, the child credit, the dependent credit and the repeal of dependent exemptions. You can access the IRS calculator here.
There are some situations when you should check your withholding. In addition to tax law changes, the IRS recommends that you perform a checkup if you:
You can modify your withholding at any time during the year, or even multiple times within a year. To do so, you simply submit a new Form W-4 to your employer. Changes typically go into effect several weeks after a new Form W-4 is submitted. (For estimated tax payments, you can make adjustments each time quarterly estimated payments are due. The next payments for 2022 are due on Sept. 15, 2022, and Jan. 16, 2023.)
There’s still time to remedy any shortfalls to minimize taxes due for 2022, as well as any penalties and interest. Contact Doeren Mayhew’s CPAs today if you have any questions or need assistance. We can help you determine if you need to adjust your withholding.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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