Do you receive a large refund every year and feel like you could use that money in your regular paychecks? Are you self employed and confused about what taxes you need to pay? Do you want to understand the earned income credit (EIC) or how the child tax credit works? If you do, then you should visit www.irs.gov. This site is surprisingly easy to negotiate and has a wealth of information that you can use to make the most of the money that you have.
The site has several calculators that can help you figure out what you currently owe in taxes, so you can adjust your withholdings accordingly. If you usually receive a large refund you can visit the site, and plug in the numbers, and see exactly how much money you need to have withheld the rest of this year, so that you will not need to pay taxes. This will give you a smaller refund amount, but you may want that extra money in your paycheck now so that you can pay for Christmas. The calculator will tell you how many to claim on your W-4 form, and you can contact your human resources office to change the amount. You will want to readjust in January, or you may end up owing next year.
There is an entire section of the site dedicated to the self-employed. You can find out what expense qualify as a deduction, and you can determine how much money you should be paying in quarterly payments. There is even the option to make your self-employment tax payments online. This can save you time, and really streamlines the entire process.
If you have questions about a specific credit or deduction there is a search engine feature available which allows you to quickly find the information that you are looking for. This can help you if have a specific questions regarding your situation. You may have questions about the HOPE credit, the earned income credit (EIC) or a child tax credit. You can find out which form you will need to use as well. You can also learn about how to take care of any back taxes that you may have.
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