Now that tax season is over, it is important to start preparing for the upcoming tax season especially if your dependent is turning 17 during the year, if you are expecting a raise, or if you lose your job. There are different circumstances that will affect the amount of your refund.
Here are a few tips to consider:
1. If your dependent turns 17 during the year, you will not qualify for the child tax credit. This means that your refund has the potential of being less than $1500.
2. If you make more money this year, make sure that you are getting enough federal taxes taken out of your paycheck. The more money you make, the more you should be getting deducted during the pay period.
3. If you lose your job and you take the withdrawal from your 401k, be sure to allow them to take federal and state taxes out of it. If you are below retirement age, an additional penalty will be paid when you file your taxes, thus, reducing the amount of your refund. We recommend rolling over your 401k, versus taking the withdrawal.
4. If you lose your job and you qualify for unemployment, be sure to get federal taxes taken out, otherwise, you will be responsible for paying the taxes when you file your income tax.
To learn more about Accurate Tax Services, be sure to visit www.AccurateTaxServices.net