Important Tax Deadline Coming the 15th

What went through your head when you read this email's subject line? Something like "wait a minute, April 15 was six weeks ago?"

It's true that the April 15 tax filing deadline has passed. But the sad truth is that taxes are due every day you earn income. And if you make quarterly estimated tax payments, the next one is due on -- you guessed it -- June 15th. So this email's subject line holds true, even though April 15 has passed.

Tax deadlines are even worse if you get a paycheck. If that's the case, April 15 comes 12, 24, or 26 times a year! And withholding is the dirty little secret to making today's tax system work. That's because when your employer withholds tax, you don't actually write the checks for the tax you pay. Withholding saves time, eliminates paperwork, collects taxes regularly and timely, and verifies that you report all your wages. But it also takes the sting out of writing that tax check yourself!

What can you do? The best advice is to review your withholding and estimated tax payments any time your tax picture changes. (Employers have to make new W-4s effective by the start of the first payroll period ending on or after the 30th day after you submit your form.) Do this as soon as possible if:

You get married or divorced
You have a baby (or adopt a child)
You or your spouse takes a new job (or one of you loses a job)
You or your spouse gets a raise
You buy or sell a house
You sell appreciated property

If you own your own business, here's a trick you can consider for deferring payment until as late as possible. Withheld taxes are treated as paid equally throughout the year, while estimated taxes are credited when they're actually paid. If you operate your business as a corporation, you can draw income through the year in the form of loans, then convert it into income (and withhold the resulting tax) in a single lump sum at the end of the year.

As always, call us with any questions or concerns. You don't have to wait until April 15th to save taxes. In fact, April 15th is usually too late. So call us now for the proactive planning that gives you the savings you really want!