Tax Matters

Tax Matters

Telephone: 949.515.2862 | Fax: 310.857.6108

Taxes Withheld

 

Now that you’ve filed your 2004 tax return — except for those of you who filed extensions and are still procrastinating — you may be asking how you can adjust your refund for next year.  Adjusting the amount of your refund, or ensuring you have no balance due, is as easy as adjusting your withholding from your paycheck — for those of you who receive W?2 wages.  You can file a revised Form W?4 with your employer at any time to either increase or decrease the number of exemptions you claim.  Increasing your exemptions results in a smaller amount of taxes being withheld from your paycheck each pay period.  Decreasing your exemptions results in the opposite.

 

If you are self-employed, a mid-year review with your tax practitioner may be in order.  The amount of estimated taxes you are required to pay may need adjusting to reflect an increase in your income or unexpected expenses.  Taking the time to make those adjustments now will prevent unwanted surprises when it comes time to file your 2005 tax return.

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