Getting atax refundcan feel like a financial relief.
But if your refund is over $1,000, you may be overpaying the Internal Revenue Service.
As an accountant and accredited financial counselor, it’s a problem my clients face far too often.
Changing your exemptions might not always make sense.
You may not want to pay the government too little and owe money in taxes each year.
This tool guides you through different prompts to estimate your tax liability based on your personal situation.
It also shows you how adjusting your withholdings could affect your paycheck.
I encourage you to reach out to an accountant if you have any questions about your withholdings.
Pro tip
If you’re self-employed or have a side hustle, this estimator tool still works.
That can help you stay on track with estimated quarterly taxes, too.
Tax refunds come from two main sources: overpaid taxes and refundable credits.
Just see to it you know the tradeoffs.
it’s possible for you to also sign up for free local workshops to learn more about taxes.
Check with your local library, community college or community centers.
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