Should you increase your withholding?
Will the federal income tax withheld from your wages be enough to meet your 2015 federal income tax liability? If not, you can choose to make estimated tax payments. However, you should be aware that the penalty rules for underpayment of estimated taxes is applied to each installment – meaning you may owe a penalty when your estimated tax payments (plus withholding) total less than 25% of your required annual payment. Increasing your withholding for the last two months of the year can help you avoid this penalty. Contact us to learn how the estimated tax rules apply to you.
Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and Twitter.