Generally speaking, April 18, 2022 is the updated deadline for which the Internal Revenue Service (IRS) sets for filing 2021 tax returns however, tax-related dates and laws change frequently so it is always a good idea to use this guide as a reference only. It is always recommended to consult with a qualified tax or financial professional about your specific situation, and before making any short-term or long-term changes to your financial or tax strategy.
As a starter, the IRS urges taxpayers to conduct paycheck checkups. The agency provides tools and resources to help you calculate the correct amount to have withdrawn from your paycheck. The calculator is designed to help you determine if your employer is withholding adequate amounts from your paycheck.
This tool leads you through various screens that require you to enter requested numbers into boxes and looks similar to a tax-filing form. Once the calculator generates the estimated taxes, which you’ll either ow or be refunded, it offers suggestions on how to adjust your withholding amount or request to get additional money withheld from your check.
The calculator is not a replacement for real-life advice, so please make sure to consult a professional before modifying your tax strategy. Advice may include changing the number of allowances you’re claiming (line 5) or requesting your employer withhold additional money (line 6). Taxpayers who receive pension income may use Form W-4P.* Once completed, send the form to your payer if you’re adjusting or making changes.
If the calculator shows that you are expected to owe taxes at the end of the year, you might consider filing a new Form W-4, Employee’s Withholding Allowing Certificate.* The IRS provided calculator designed to give feedback based on certain assumptions. It is not intended to give specific tax, legal, or accounting advice.
To generate a calculation, the IRS recommends you have these documents:
The calculator will not request you provide personal or private information. It will, however, ask you the number of children you expect to claim for the Child Tax Credit and Earned Income Tax Credit.
Taxpayers with more complex tax issues may follow the instructions in Publication 505, Tax Withholding and Estimated Tax.
You can claim losses only if they exceed capital gains. You’re allowed to claim the difference up to $3,000 per year if you’re married filing jointly, or $1,500 if you’re filing separate returns. Net losses that exceed $3,000 can be the carried over into future years.*
You can claim losses only if they exceed capital gains. You’re allowed to claim the difference up to $3,000 per year if you’re married filing jointly, or $1,500 if you’re filing separate returns. Net losses that exceed $3,000 can be the carried over into future years.*
Find a place to store your tax documents until it’s time to prepare of file. If you have access to a financial planning tool through your advisor, find out if you have access to a secure, digital vault. This is a great place to securely store financial documents and alleviate concerns as deadlines approach.
If you have your documents to prior-year returns stored on your computer, make sure you back them up on a thumb drive or other device or system in case your computer is hacked or stolen.
The IRS provides recommended timelines for retaining financial documents.*
Investment advisory services are offered through Trek Financial, LLC., an SEC Registered Investment Adviser. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. © Copyright 2021 Trek Financial. All Rights Reserved.