For most folks, having taxes–and other necessary payments like unemployment and Social Security–taken out of paychecks is just part of life. Ideally, the amount taken out will be close to what it should be and any refunds or taxes due at year’s end will be minimal. If you’re not having taxes withheld by your employer, however, filing taxes can be a bit more complicated since you’ll likely owe a lot on your taxes. If this describes your situation, our Sacramento area team can help no matter where you’re located.
So, what do you do? It all depends on your circumstances.
Why Aren’t Taxes Being Withheld?
Start by determining why taxes aren’t being withheld from your check. In some lines of work, this is simply the norm. Contract workers typically don’t have taxes withheld, and tip-based workers like servers or bartenders may not have taxes withheld from their cash tips. In both cases, though, you are expected to pay tax on your total income and, depending on your income, are likely expected to pay estimated tax quarterly.
If you have a salaried job, though, then you should typically be filling out a W-4 form for your employer so that they can estimate your taxes and withhold them from your check. If this isn’t happening, ask your HR department why not; this can allow you to make things easier in the future.
What Do I Do About It Now?
If taxes haven’t been withheld from your checks for 2018, you’ll need to pay the full tax when you file in 2019; you may also owe fees, if you were expected to file quarterly estimates and failed to do so. Our Sacramento area team can help you file taxes no matter where you’re located and, if necessary, we can help you make a plan to pay the taxes over time to avoid one large lump sum.
We also suggest double checking your withholdings if you find that your taxes are off when filing. This could be due to a second income, capital gains, or because you failed to update your W-4 after a major lifestyle change like a marriage, divorce, retirement, or bankruptcy.
No matter what your tax situation is, Paramount Tax Relief is here to help you get things in order for today, tomorrow, and the days ahead. To learn more and to get the help you need, be sure to contact us by calling (916) 533-9940 today.