For many, compiling a tax return can be a stressful time - especially if you’ve had some significant changes in the past year. Selling property, acquiring real estate, earning dividends, getting married, gaining a dependent - all of these situations and more can impact precisely how much tax you owe during the course of a year. As you and your accountant crunch the numbers, waiting to see the results can cause a bit of angst.
Hearing that you’ll be getting a refund seems to always be a relief, but did you know that this may not necessarily be a good thing? A refund isn’t additional cash that you’ve magically earned because of your current tax status, but is instead, money that you have paid to the government and are finally getting back - after nearly a year in some instances. For this reason, and others, getting a refund (IRS Tracking Tool
) may be a blessing but there may also be ways to benefit more in the future.
Getting a bigger refund often indicates you paid too much tax during the course of a year, pulling extra money out of your paycheck. Depending on how you are paid - monthly, weekly, bi-weekly, quarterly, etc. - each check is having too much taken out for taxes if you’re getting a substantial refund come tax time. While some people prefer this, expecting to get a small windfall in the spring, others could definitely use this additional money throughout the year instead of having to wait.
One way to adjust the amount being taken from your paycheck is to change the withholdings. Even if you are comfortable with the refund currently being received, a professional analysis can help you evaluate current withholdings and the impact of any potential changes to your return in a coming year. Just because you commonly receive a refund doesn’t indicate that a change may be beneficial.
Often refunds are viewed as loans being provided to the government on your behalf. Instead of collecting the money owed to you throughout the year, a refund has been stowed within the government’s bank collecting interest prior to being distributed once you file a return. Instead of “loaning” the government additional money, consider making a change to receive your cash earlier instead of following a tax return.
Once you’re ready to file a return, if you need help determining exactly which withholdings to select, or have any other tax related questions, then let the professionals at Bloch Rothman and Associates
assist you today. In addition to providing answers for your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service.
If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us
today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!