Active Planning & Investment Solutions logo

2810 Fieldstream Drive North

Wilson, NC 27896

 

Phone: 252-237-4357

Fax: 252-243-2681

 

March/April 2018

Estimating Future Taxes

Did you underestimate your tax bill? It doesn’t have to be this way next year.


Costly Mistake


This can happen when you don’t deposit taxes with the IRS for income from which taxes were not deducted. Not paying taxes periodically on this income can trigger penalties and interest on your underpayment.


Calculations on IRS Form 1040-ES can tell you what you owe next year. Divide that number by four and submit payment on the dates instructed by the IRS (located in the form). Or if your spouse has a job where the employer withholds taxes from income, consider decreasing exemptions, which would increase the taxes withheld.


Take It Easy


If you want to use technology to estimate your taxes, use a popular tax software program or the IRS’ own app at https://apps.irs.gov/app/withholdingcalculator.


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Active Planning & Investment Solutions and LTM Client Marketing are unrelated companies. This newsletter was created by LTM Client Marketing and was not written or created by the named financial professional and does not necessarily represent the views and opinions of Avantax Wealth Management® or its subsidiaries.
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