You noticed that each time your individual income tax return is prepared, you still have a considerable amount of tax due, in addition to tax withheld from your paycheck throughout a year. Or maybe it is exactly opposite – you are owed large refunds. While you may dismiss these as inevitable part of dealing with taxes, it does not have to be this way.
Davidoff & Associates offers a service that addresses these cases head on. Why is it important to address these two diametrically opposite cases? Because having too much or too little withheld from your paycheck may lead to either a false sense of financial security in the former case, and giving IRS or state taxing agency an interest-free “loan” and depriving yourself and your family from having access to extra funds throughout a year in the latter case.
We offer W-4 and state withholding optimization. W-4 is the federal withholding certificate where you are supposed to come up with the number of exemptions, which are then used to figure the proper amount of federal tax to be withheld from your paycheck. Ditto for the state withholding certificate. This could either be offered as a standalone service or a part of the full-scale tax planning.
Our dedicated team will crunch your current year data (both actuals and projections) to come up with an optimal number of exemptions to maximize the amount of money available to you and your family during a year while at the same time letting you remit just enough to IRS and state taxing agency to keep them from assessing underpayment penalties and not owe extra to them on your tax return.
While this service is not designed to reduce your overall tax burden as the tax planning usually does, it nonetheless puts more money in your pocket when you really need it.
Davidoff & Associates can take this one step further and optimize your retirement plan contributions, which will actually reduce your taxable income.
If you find yourself in any of the situations described above, it would be a perfect time to make a change by contacting us to schedule a free assessment.