Discover more from The Financial Formula Newsletter
Are You Withholding Enough In Taxes?
By Martin A. Federici, Jr., CEO of MF Advisers, Inc. & MF Tax & Accounting, Inc.
We all know that life gets hectic sometimes and – with direct deposit of paychecks – sometimes people forget to look at their pay stubs to see if enough federal taxes are being withheld from their paychecks. After this tax season (especially), I noticed that this gets some people in a bad spot come tax filing time because they just assumed that they had enough withheld in federal taxes from their paychecks throughout the year. Talk about an unpleasant surprise when they get that W-2! But it’s totally under your control if you know what to do…
Thanks for reading The Financial Formula Newsletter! Subscribe for free to receive new posts and support my work.
I wanted to make sure all our readers know to heed this one simple piece of advice:
· Check your federal income tax withholding for the year as of your last paycheck RIGHT NOW!
If you notice that it doesn’t look like enough (or if you’re not sure if it IS enough) taxes are being withheld (not only federal taxes, but state and local as well) so far in 2023, do either or both of the following:
either talk to your accountant, CPA, tax advisor, tax preparer, financial advisor, etc., to make sure how much in taxes you should have withheld in ’23 and make the proper adjustments and/or
go to your payroll department at work and make sure to get a W-4 if you need to adjust how much you’re having withheld for federal taxes (check that the right amounts are being withheld for state and local income taxes as well; saw a number of these that were wrong in ’22 as well)
If you do this, you’ll be better prepared for the results of your 2023 tax return (and hopefully don’t owe out the wazoo) – you’re welcome!
Find an experienced financial advisor who is aware of your particular tax situation, works for an RIA firm, earns his/her money from fees (NOT commissions), believes in having an abundance of investment choices for clients, and has the heart & demeanor of a teacher, NOT a salesman, and chances are you’ve found the right financial advisor to help you prepare and plan for your financial goals.
About MF Advisers, Inc.
MF Advisers, Inc. is a full-service, fee-only RIA firm and fiduciary based in PA & FL specializing in wealth management, investment advice, and financial planning.
With 25+ years of licensed experience, over 10 years of professional education, and an unwavering commitment to improving your financial situation, MF Advisers, Inc. is the advisory firm to best serve YOU.