Withholding Check-up

It’s half way through the year; time for a withholding check-up. Was there a larger refund on your tax return than you liked last year? If you didn’t adjust your federal/state witholding at your work, it’s not too late to do so.

Also consider your overall projected income for the year. Are you on track to earn $200,000 as a single person, or $250,000 if you file jointly? Then you will need more withholding this year because you’ll get hit with the new 0.9% Medicare surtax on earned income. Your employer will withhold it if your single income reaches the threshold, but it you file jointly, and together you hit the $250,000 mark, you could get hit with a tax bill next year. Consider filling out a new W-4 form at work and having more withheld from your pay.

This new tax will affect Married Filing Seperate returns with income at $125,000.

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s