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When it comes to filing taxes, you may be inclined to push it out of your mind until a new year rolls around and the holiday leftovers are long gone. But if you unexpectedly owed in 2023, there are steps you can take now to lessen your potential hit when next year's tax season rolls around.
Mid-year is an excellent time to take a holistic view of your finances and make adjustments as needed to set yourself up for a more predictable (and palatable) tax season. As I recently shared with CNBC, one step you can take is to increase your federal withholding by updating your Form W-4. The IRS Tax Withholding Estimator tool can help you determine what you may owe before changing the W-4 form with your employer.
If you're self-employed or working part-time and you're receiving income that does not have taxes withheld, make sure you are making quarterly estimated tax payments to the IRS to avoid potential penalties.
Have questions or want personalized financial advice? Our team would love to talk. Request an appointment and we'll be in touch.
Required Disclosure:
The material presented by David Peters in this interview is for informational purposes only, is general in nature, and is not intended to and should not be relied upon or construed as a financial plan or financial/investment advice regarding any specific issue or factual circumstance.
Financial and investment advisory services offered through Peters Financial LLC. Brokerage and custodial services offered through Charles Schwab Co. Inc., member FINRA and SIPC. Peters Financial LLC and Charles Schwab Co. Inc. are not affiliated. David Peters also offers tax services through Peters Tax Preparation & Consulting, PC. Peters Tax Preparation & Consulting, PC is not affiliated with Peters Financial LLC and clients or prospective clients are never obligated to use Peters Tax Preparation & Consulting, PC. as part of any financial planning or investment management services offered by Peters Financial LLC.
About the Author:
David Peters, CPA, CFP, ChFC, CLU, CPCU, CGMA, is the Founder and Owner of Peters Professional Education (petersprofessionaleducation.com) and Peters Tax Preparation & Consulting, PC. David Peters is also registered with the U.S. Securities and Exchange Commission (SEC) as an Investment Advisor Representative (IAR) with Peters Financial LLC. He regularly teaches courses in accounting, finance, insurance, financial planning, and ethics throughout the United States, and regularly contributes regularly to various professional publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures.