Think It’s Time To Chill Now That You’ve Paid Your Taxes? Definitely Not!

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You’ve been a good citizen – you’ve paid your taxes and gotten your refund. So, now you must be thinking that you can lay back and relax for the rest of the year, right?

Not so soon, says the IRS.

According to the IRS, citizens should now be more alert when it comes to taxes. Due to the recent modifications that took place in the tax filing system, thanks to the Tax Cuts and Jobs Act of 2017, IRS thinks that US citizens should double check their taxes filed, that is, they should do a “paycheck checkup.” David Kautter, Acting IRS Commissioner, states:

“The IRS is taking special steps to help taxpayers understand these tax law changes. We encourage people to do a paycheck checkup to help make sure they’re having the right amount of tax withheld for their unique personal situation. To help with this, the IRS has added and updated a variety of tools and information to help taxpayers.”

What Does The IRS Recommend?

Apart from paying taxes, taxpayers now need to make an early head start for determining the amount of money that should be withheld from their paychecks. This is quite important because a minimal amount of money withheld would inevitably lead to a high tax bill in the upcoming year.

Wondering how you’ll determine that? Well, IRS has got you covered!

Always a step ahead in creating a robust tax filing service, the IRS has now devised a “Withholding Calculator” to make your tax filing experience much more convenient. You can visit www.irs.gov and click on the Withholding Calculator link.

What this calculator does is compare your present withholding options with possible estimates, thereby allowing you to have a rough idea of how much money should you withhold from your paycheck. In case you wish to make adjustments to your tax withholding amount, you need to fill out and submit a form to your employer known as the Employee’s Withholding Allowance Certificate, or W-4. The advantage of doing this as soon as possible is that your tax withholding will continue smoothly for the rest of the year, without you having to face any hassles.

IRS highly recommends this paycheck checkup for individuals holding two or more jobs, double-income families, individuals who declared their deductions in the previous taxation period, and also those who had substantial tax bills in the last taxation period.

The Never-Ending Tax Season

To create awareness among US taxpayers, IRS has launched a helpful guide: “Tax Reform Tax Tips.” You can access these tips at www.irs.gov/newsroom/tax-reform.

To help you further, IRS has created the option for penalty relief for those taxpayers who hold an excellent record of filing and paying their taxes on time. In case you ever get late to pay your tax, that is, you file for tax after the deadline, you can qualify for the penalty relief provided if you haven’t been charged with tax penalties in the past three taxation periods. However, you also need to attach a letter addressing the IRS explaining the reason for the delay. To know more details about this, you can check out the “First Time Penalty Abatement” at www.irs.gov.

Worried about how to manage your taxes, contact MyTaxFiler at tax@mytaxfiler.com. Our team of expert tax consultants will be more than happy to walk you through the details of tax filing in a 30-minute consultation call!

Be a smart citizen, know your tax rights today with MyTaxFiler, the best tax filing service in Plano. 

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