It Pays to Prepare: filing federal tax for 2013

According to the Internal Revenue Service (IRS), now is the perfect time to begin reviewing your federal income tax withholding rate so that you can avoid both big tax refunds and tax bills when you file your federal tax returns next year.

Every year, there are millions of citizens who have to wait for long processes of refunds simply because they have more taxes withheld than the actual required amount. This can prove to be a hassle since they will not be able to access their money immediately. On the other hand, a poorly calculated tax can also lead to having to pay additional taxes on the day of filing.

Jennifer Jenkins, spokesperson for Ohio IRS, said, quote, “By reviewing and adjusting your withholding rate, you are less likely to have to write out a big check in April to pay taxes due. That’s if your withholding is less than it should be. Or, if your withholding rate is too high, adjust it to put more money in your paycheck now. The timing couldn’t be much better for those who are looking ahead to holiday gift-giving season, cold weather heating bills, and end-of-year charitable donations”.

You can make adjustments and modifications to the number of your withholding allowances at any time. Simply check out the different forms available such as the W-4 form at the IRS website (irs.gov). There is also an IRS Withholding calculator to help you fill out your information properly.