Avoiding Tax Surprises

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There are usually two things that you can adjust in order to try and avoid a surprise come tax time.

1. Adjust your withholdings from your paycheck to have the right amount of taxes taken out. Come tax time, if the right amount of taxes are taken, then you should not owe any taxes or you could get a refund.

2. If you get income that is not subject to withholdings, then you can make estimated tax payments. These are payments that are made every three months to pay for the amount of money that would have been deducted from your paycheck if you could do withholdings.

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