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Mid-Year Tax Planning: Lowering Your Individual Income Tax Bill

Consider adjusting your tax withholding or estimated payments

If you owed taxes for 2021, you may want to revise your Form W-4. To help you do this, consider using the IRS’s “Tax Withholding Estimator,” available at: Individual Tax Withholding Estimator.

If you make estimated tax payments throughout the year (which is likely the case if you are self-employed), consider taking a closer look at your tax situation for 2022 to make sure you’re not underpaying or overpaying.

Making and withholding tax payments throughout the year can take some of the surprise out of filing your tax return. This is also a good way to avoid any underpayment penalties when you file.

There are many strategies that can be used when it comes to adjusting your withholding and estimated payments. Consult your tax professional to better understand ways to adjust your tax refund/bill that best suits you.