Amidst all the holiday parties and get-togethers, take a few minutes to save yourself hassle in 2020. Think you know you’re getting a tax refund when you file? Things that happen now might change what you think you will get. You could even owe the government more money!
Know what you owe.
Certain financial transactions can affect your 2019 tax withholdings.
- Year end or holiday bonuses.
- Stock dividends
- Capital gain distributions from mutual funds and stocks
- Real estate or other property asset sold at a profit.
How to cure the shortage.
American taxpayers can still make a quarterly estimated tax payment for 2019 tax year, payable directly to the IRS until January 15, 2020.
Other deductions from your IRS tax refund.
Even when you do know the estimated tax refund amount, the amount can change if you owe federal tax or non tax debts such as:
- Past due federal tax.
- State income tax
- State unemployment compensation debts.
- Child and/or spousal support
- Federal non tax debts such as student loans
If your debt will create an offset, you will receive notice, and then the balance of your refund. Be prepared by knowing what you will have to pay or what your refund amount will be and don’t spend your tax refund before you receive it. If you need help on current or past due tax bills, visit PersonalTaxPrep.com to find a tax professional in your area who can guide you through complicated tax issues.