February 14th, 2016
TAX TIP OF THE DAY... Do you owe the IRS every year?
If you owe the IRS less than $1k, there is no problem other than the pain of writing the check. But no penalty. But if you don't want to owe each year, it is an easy fix.
STEP 1: Increase tax withholdings. Look for income sources with no or very little withholding.... social security, part-time W-2's, 1099s. Complete a new W-4 and choose single-zero if you want to maximize withholding.
STEP 2: Identify more tax deductions.
STEP 3: As a last resort... quarterly estimated tax payments on form 1040-ES.
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If you need a tax appointment... www.baboiancpa.com
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David S. Baboian, CPA