The answer is always yes to this question. Here we are in the middle of July and the thought of having taxes done, speaking to your accountant, or that April tax deadline is barely a thought in your head. But they should be….
There is nothing worse than owing the government a pile of cash come tax time because you didn’t properly withhold enough during the year. Or you made some extra money in the stock market, side business, etc and underestimated the taxes. The second worse thing would be getting a huge return at the end of the year because that just means the government was holding all that money (of yours!) that you should have had in your pocket throughout the year.
So what should you do? These are the talks you need to have with your accountant or get yourself an accurate online tool to estimate what is that “breakeven point” which is the goal. Come tax time, you want to either pay or receive as little money as possible. Do you need to adjust your W-4? Do you need to start putting money aside during the year and pay estimated taxes? Whatever it is, start thinking about it right now because waiting until January when your tax forms start arriving in the mail….it’s too late. Plan ahead friends!
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