Friday, January 22, 2010

It's Tax Time

For many, this time of year, "Tax Time" brings about pangs of anx and fear. The fear of their tax professional telling them that they OWE is a frightening thing. It doesn't have to be.

The first step to a positive tax time experience, if you are an employee is your W-4. The W-4 is one of the forms you sign when you are first hired for a job. You're signing this form so that your employer will know the correct amount of federal income tax to withheld from your pay. Fill out the personal allowance worksheet, and carry the numbers down. As long as you read carefully and follow the instruction, you should be good to go. There are special instructions for married folks, and folks with more than one job. There's even an option to have additional monies withheld...this is optional, and not mandatory Get this part right, and you should be fine. Should be.....those who choose to claim more allowances than they have, usually find themselves in a tight situation at the end of the year. These, many times are the folks that owe.

Note: Every time you start a new job, you MUST file a 10 jobs...10 W-4s !

Self-employed individuals need to pay their taxes quarterly. If you suspect that your tax liability is going to be more than $1000 after subtracting your withholdings and refundable credits, you may need to pay estimated taxes (other rules apply).

Once you have this covered, and apply what needs to be applied, you should be in a positive tax situation at the end of the year.

At the end of the year, your employer will issue you a W-2. It will contain your income received for the year, and all the taxes that were withheld....including social security and medicare taxes. Once received, this is the document (along with others that apply to your situation) that is given to your tax professional.

Many families know that filing their taxes is a way to take advantage of the many, many refundable credits given to us from the federal government. Most of us will receive a refund.

This is Wanda, many of you know me as Uigei and I offer affordable tax preparation. All states except Washington State. Contact me for any special "situations" you may have questions about.

This has been quite a trying time for so many of us. As affordable as my rates are, I understand that many will need a....well you know. Talk to me, we can work something out. I mean that.

Credit Cards (through PayPal) and Cash accepted.

Many Blessings, and Thank you for reading. I look forward to being your tax professional.
Wanda (Uigei)

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