Showing posts with label file and pay taxes. Show all posts
Showing posts with label file and pay taxes. Show all posts

Friday, November 1, 2019

Indicators You May be Paying Too Much in Taxes


Almost everyone in America has to file and pay taxes. And, while it may be one of the most dreaded parts of the year, taxes are basically a positive thing. They benefit the general public and provide you with a way to “give back” to the greater good of our country.   


With that said, however, no one should have to pay more than his fair share of taxes. And, if you are paying too much, often evidenced by certain key indicators, you need to remedy the problem right away.

Huge Refund Checks

Many people look forward to tax refund time because they tend to get a sizeable check back.

However, that check isn’t a gift from the government the way that many people think. Instead, it’s just a refund of your own overpaid money.

If you’re getting anything back, but especially if it’s a lot, then you’re overpaying in taxes throughout the year. Consider adjusting your withholdings or other tax features with your HR department at work and/or with the help of a tax professional.

That way, you can enjoy more of your money throughout the year, rather than waiting on a tax refund to swoop in and “save” you.

A Recent Marriage

If you’ve recently gotten married, you may find that you suddenly owe a larger than usual tax bill.

While sometimes, if both spouses’ incomes are high and you file jointly, the amount can be accurate, other times, newly married couples have simply failed to adjust their withholdings appropriately.

This is especially true when one spouse is considered a dependent, in which case withholdings can be adjusted down.

A Lack of Exemptions

Almost everyone will qualify for one or more exemptions or tax credits

If you’re not claiming any and are getting hit with a huge tax bill you can barely pay, chances are that you’re just not taking advantage of the tax breaks available to you.

Work with an accountant to make the most of allowed exemptions and other special tax bonuses.

Paying too much in taxes is unfair and certainly doesn’t benefit you. So, if you suspect you may be shelling out more than you should, get with a professional pronto to adjust the situation.