Tips for Pain-Free Tax Filing

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It’s time again to start thinking about getting your tax return prepared. Here are some quick tips you can use to help speed tax filing and avoid hassles.

  • Gather all documents needed to prepare an accurate return, including W-2s, 1099 forms, statements of interest and dividends, and relevant receipts. Failure to provide certain information could mean an incomplete return, which may require additional processing and delay any refund due.
  • Check names, Social Security numbers and amounts for accuracy and correct spelling. Also, if you supply a bank account number, double-check it.
  • Don’t wait to contact the office for a tax preparation appointment.

If you are interested in tax services, Contact Us to see if we’re the right fit, and if you’re already a client, call the office to schedule your appointment.

408-252-1800

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Required Withholding for Supplemental Pay

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Employers are required to withhold federal tax from supplemental wages paid to employees. These include bonuses, commissions, reimbursements (so long as you don’t have an accountable plan), severance, cash prizes, retroactive raises and taxable fringe benefits.

Suppose you pay a bonus separately from regular wages. In that case, you generally must either 1) withhold 22% or 2) add the supplemental wage to the employee’s regular wages and withhold at the ordinary rate.

Supplemental wages paid with regular wages are subject to ordinary withholding. (For supplemental wage payments over $1 million, tax on the excess must be withheld at the highest rate, currently 37%.)

If you have additional questions or are interested in tax services, feel free to contact our office.

408-252-1800

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Don’t Wait Until the Last Minute to File Your Extended Return!

Woman filing extended return

If you requested an extension to file your 2023 tax return, you probably know that the deadline to file your extended return is coming up soon, on Oct. 15. If you have the information you need, consider filing now.

There’s no advantage to waiting, and last-minute filing may lead to worry. If you’re concerned about paying any tax owed, the IRS offers short- and long-term payment plans, as well as installment agreements, to taxpayers who qualify. It’s important to act quickly if you owe because any amount that was due April 15 accrues interest until the balance is paid. As soon as possible, gather your 2023 tax year records and contact the office for an extended return preparation appointment or to ask any questions you may have.

(408) 252-1800