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IRS Urges Taxpayers to Check Their Withholding

10/26/2016

IRS Urges Taxpayers to Check Their Withholding; New Factors Increase Importance of Mid-Year Check Up

 
 
On August 31st this year, the Internal Revenue Service encouraged taxpayers to consider a mid-year tax withholding checkup following several new factors that could affect their refunds in 2017.  Taking a closer look at the taxes being withheld can help ensure the right amount is withheld, either for tax refund purposes or to avoid an unexpected tax bill next year.
 
The withholding review takes on even more importance this year given a new tax law change that requires the IRS to hold refunds a few weeks for some early filers in 2017 claiming the Earned Income Tax Credit and the Additional Child Tax Credit. In addition, the IRS and state tax administrators continue to strengthen identity theft and refund fraud protections, which means some tax returns could again face additional review time next year to protect against fraud.
 
"With these changes, it makes good sense on many different levels to check on your withholding and plan ahead for next tax season," said IRS Commissioner John Koskinen. "It's a personal choice if you want to have extra money withheld to get a bigger tax refund, but you have options available if you prefer to have a smaller refund next year and more take-home money now."
 
So far in 2016, the IRS has issued more than 102 million tax refunds out of 140 million total individual returns processed, with the average refund well over $2,700. Historically, the refund figure has increased over time in size.
 
By adjusting the Form W-4, Employee’s Withholding Allowance Certificate, taxpayers can ensure that the right amount is taken out of their pay throughout the year so that they don’t pay too much tax and have to wait until they file their tax return to get any refund. Employers use the form to figure the amount of federal income tax to be withheld from pay.
 
For greater knowledge and assistance with any tax payer changes to your withholding status, be sure to contact the tax professionals at Gordon Zink CPA, PA. Our staff is fully trained and ready to help you with your 2016 tax reporting. Visit our website at ZinkCPA.com for a list of our services and helpful resources.
 
Tax professionals make preparing and filing your tax deadlines less stressful. Consult your CPA in making decisions. Be organized. Build a relationship and share all your financial information so your CPA can determine the best way to expense or report your earnings. The team at Zink CPA has been in Southwest Florida for over 35 years dedicating quality accounting services and year-round tax advice to corporations and individuals. Call us today for your appointment at 239-936-1120 or email accounting@zinkcpa.com. We look forward to hearing from you.