No one likes surprises when it comes to taxes. The IRS has sent out an important reminder to millions of American, get your tax situation in order before the end of the summer to avoid any nasty surprises in 2025. Sounds serious, right? But don’t worry, I’ll walk you through what you need to do to stay ahead of the game.
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Why You Need an “End-of-Summer” Tax Checkup
So, what’s the big deal? The IRS is advising everyone to do a quick tax checkup before the summer wraps up. Why? Because a little preparation now can save you a lot of stress (and money) when tax season rolls around next year.
Who Should Be Paying Attention?
If you’re thinking, “This probably doesn’t apply to me,” think again. There are a few groups of people who really need to take this advice seriously:
1. New Workers:
If you’ve just started a new job, you might not be aware of how much tax you should be paying. It’s easy to get caught off guard if you’re not careful.
2. Life Changes:
Had a big life event recently? Maybe you got married, divorced, had a baby, or bought a new home. All of these changes can impact your tax situation, so it’s important to check if your withholding is still accurate.
3. Gig Economy Workers and Side Hustlers:
If you’re earning money from a side hustle or gig work, your income might not have taxes automatically withheld. This can lead to a big bill come tax time if you’re not keeping track throughout the year.
How to Avoid a Big Tax Bill in 2025?
The goal is simple: make sure the amount of tax you pay throughout the year matches what you owe. If you’re paying too little, you’ll face a big bill next April. If you’re paying too much, you’re giving the government an interest-free loan. Either way, it’s better to get it just right.
What Should You Do?
The IRS makes it easy with their Tax Withholding Estimator Tool. This online tool helps you figure out if you’re withholding the right amount of tax from your paycheck. It’s quick, easy, and can save you from a lot of headaches next year.
Don’t Wait Until It’s Too Late
September is a great time to make adjustments because you still have a few months left in the year to get things right. The sooner you check your tax situation, the better off you’ll be. No one likes to deal with tax surprises, so take a few minutes now to ensure your 2025 tax season goes smoothly.
Conclusion
Taxes can be confusing, but with a little bit of planning, you can avoid the stress and frustration that comes with an unexpected tax bill. Whether you’ve started a new job, experienced a life change, or have income from a side gig, it’s worth taking the time to do an “end-of-summer” tax checkup. Trust me, your future self will thank you.
FAQs
Why should I do a tax checkup before summer ends?
To avoid an unpleasant tax surprise in 2025.
Who needs to be most careful about tax withholding?
New workers, people with life changes, and gig economy workers.
What happens if I don’t adjust my tax withholding?
You might face a big tax bill or refund in April 2025.
How can I check if my tax withholding is accurate?
Use the IRS Tax Withholding Estimator Tool.
When is the best time to adjust my tax withholding?
Before the end of summer, ideally in September.
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