Making Changes

It is not odd to hear us trumpet about this wonderful time of year. Summer starts a little early for us, beginning as soon as the tax season ends. This doesn’t mean that it can’t be great for everyone, though.

When you prepare your final tax return and drop your signature before finally sending it off, it’s possible that the final number surprised you. It’s also possible that it caused you to want to make some changes to avoid a similar surprise next year – no matter whether it was a good or bad surprise.

Once that return was sent off and you received your refund or paid your balance, though, that surprise can wear off quickly. Much like what carries us into tist season of bliss, a wind blows that makes us happy it is all over.

Until next year that is.

For if you don’t make any changes between now and next year, that surprise is likely to remain. Acting now may feel daunting but will feel worth it come next filing season.

If you already know what changes you could make, then great, consider this s gentle reminder to do them as soon as possible. After all, the earlier things get accomplished, the easier it is to see them make a significant difference on that final return number.

If you are not sure exactly what to do to help your situation, though, a good place to start is with tax withholding that comes out of your paycheck. After all, a shift of $50 in each paycheck won’t feel nearly as big as hundreds (or thousands?) of dollars at the end of the year. The IRS offers a tool at www.irs.gov/individuals/tax-withholding-estimator that asks the right questions to get you into a better spot.

Finally, remember this can go either way, too. If you had to pay more than expected with your tax return, that is going to look like an immediate problem. If you ended up with an unexpected big refund, though, it doesn’t feel like a problem. You can also change things so in that situation, though, so you bring home some of that money with each paycheck. Even setting things up so that some pay goes into a savings account means you will get to earn the interest on that money and not leave it for the government to benefit from.

Warmly,

Josh Bousquet
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