It’s time for an income tax checkup!
Next tax season is quickly approaching, and it’s time to start planning ahead. IRS Commissioner John Koskinen recommends taxpayers check their withholding before the new tax year begins.Fine-tuning your withholding may not only give you extra cash now or save you paying a large bill in April, but will reduce your anxiety if your tax refund is one that’s delayed.Several recent or new tax law changes could cause your refund to be delay or reduced:
- A new law requires the IRS to hold refunds for filers claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until after February 15, 2017. Doing so gives the agency longer to detect and prevent fraud. The entire refund is held, not just the part associated with EITC and ACTC. This delay will affect early filers anxious for their refunds.
- In the battle against identity theft and crooks filing fraudulent returns, many legitimate refunds could be delayed as returns undergo extra scrutiny.
- Taxpayers receiving advance payments of the Premium Tax Credit could experience large differences between the credit payment and the amount of credit allowed if they don’t promptly report any changes in their circumstances via an update to their withholding.
The IRS offers an online Withholding Calculator to help you determine the correct amount of tax to withhold. If changes need to be made, submit a new W-4 to your human resources department.Of course, if you need a qualified tax accountant’s help, the staff at Patrick & Robinson CPAs is here for you.Contact us at Office@CPAsite.com or 904-396-5400.
