Strategic Partners

Avoiding Tax Surprises: Does Your Withholding Need Adjustment?

In the past, major law changes occurred only every few years. Consequently, your tax situation remained relatively stable from year to year, and you only thought about changing your withholding with the occurrence of major life events such as marriage, the birth of a child, or purchasing a home. In the past few years, however, tax law changes have occurred frequently, often in the middle of the year, and many of these changes are temporary measures to try to stimulate the economy. How can you be confident that you are having the correct amounts withheld from your wages? Federal form W-4 includes worksheets for determining the proper number of withholding allowances. It is a helpful tool, but there is an easier method available. The IRS website has a calculator for determining your proper withholding allowances. It guides you through several questions and takes into account many factors not included in the W-4 worksheets. Go to www.irs.gov/individuals, and scroll down to IRS Withholding Calculator. Use this opportunity to take advantage of greater take home pay throughout the year, or save yourself from owing a large balance next April.

	Michael Callahan, CPA Michael is a native of Winchester. As a local CPA, he graduated with honors from George Mason University with a degree in Accounting and a minor in Information Technology. Since 2002, Michael has been benefiting his many customers, who come mostly from referrals of his other satisfied customers.
	Laura Hisey, CPA Laura graduated from Shenandoah University in 1997 with a Bachelor of Accountancy, summa cum laude. She has maintained close relationships with her clients, who come mainly from referrals of her other satisfied customers.