With the new federal tax date (July 15) approaching, many taxpayers have filed their federal tax returns electronically and the IRS is back to processing paper tax returns sent by mail. If you’re expecting a refund, beware of these common myths.
Getting a refund this year means there’s no need to adjust withholding for 2020
To help avoid a surprise next year, taxpayers should make changes now to prepare for next year. One way to do this is to adjust their tax withholding with their employer. This is easy to do using the Tax Withholding Estimator. This tool can help taxpayers determine if their employer is withholding the right amount. This is especially important for anyone who got an unexpected result from filing their tax return this year. This could have happened because the taxpayer’s employer withheld too much or too little tax from the employee’s paycheck in 2019.
If you pay estimated taxes and are expecting a refund, that’s a sign that you should take another look at the 1040-ES worksheet to get a more accurate estimate. Remember that you can revise your