Owed taxes? How do I fix it for next year?
There are many ways to adjust your tax situation now, so you won’t owe 2022 taxes.
If you are an employee and are paid on a W2, then fill out a new W4 with your employer. The easiest way is to take the amount you owed this year and divide it by the number of payments during the year, then enter that amount on the 2022 W4, line 4c. This is taking an additional amount out of each payment so you can offset the tax at the end of the year.
If you’re self-employed or paid as a contractor on a 1099 NEC, then you need to make quarterly estimated tax payments to offset the tax. You may also be able to open a traditional IRA and contribute some money to offset your tax liability. Please consult with a tax advisor before to make sure you qualify for this deduction. There are limits on income, etc. where it may not be your best option.
If you need assistance with this, please contact your local tax professionals at Meadville Tax Service. We are always available by email at info@meadvilletaxservice.com or 814-333-2488.
