If you sit down to do🍌 your 2024 taxes and find yourself paying more than expected, experts say you may want to adjust your W4 or utilize tax credits and deducꦺtions sooner rather than later.

Experts recommend starting to check your taxes earlier in the year. This will allow you to make changes throughoutಌ the year ൩and prepare for how much you owe after the 2025 tax season ends.

“More and more, people should plan and get a feel for what their taxes look like throughout the year, whether they check it out themselves or talk with their professional three or four times," said Tom O’Saben, director of tax content and government relations for the National Association of Tax Preparers.

Adjust Your Withholdings To Cre๊ate The༺ Best Refund For You

If you are unpleasantly surprised by how much you owe in taxes or your tax refund, you may be 澳洲幸运5官方开奖结果体彩网:withholding too much or too little.

Start by looking at your W4 and to know how much is being withheld on each paycheck. O’Saben recommends doing this as early as possible so that more of your paychecks are adjusted to suit your needs🐠.

You may not have paid enough taxes on each paycheck if you owe more than expected. To increase your withholdings, you can claim less 澳洲幸运5官方开奖结果体彩网:exemptions. You can also request ꧟your employer to take out more money each paycheck.

“It’s a lot easier to pay that on𒈔 each payday than trying to come up with it at tax filing season,” O’Saben said.

Ed Mahaffy, certified financial planner and chartered financial consultant, said you may also want to ensure that you do not withhold too much so that you can use your money throug🎶hout the year.

"You don't want the government using your money for free," Mahaffy said. "If you have over-withheld, then you have to go seek a refund and they've been earning interest on your money for a year."

Withholding too little, on the other hand, can result in a tax penalty. If you haven't paid enough taxes throughout the year, the Internal Revenue Service (IRS) may charge an 澳洲幸运5官方开奖结果体彩网:underpayment penalty, which is typically the amount you 𒀰owe plus 5% of the underpaymeꦬnt amount.

"Instead of approaching it on an ad hoc basis, sit down and say, 'This is what I suspect my income will be this year next year. Here's what's going on in my life,'" Mahaffy said.

Utilize Tax Deductions and 𓄧Credits To Lessen The Amount of Taxes Dཧue

澳洲幸运5官方开奖结果体彩网:Tax deductions take the tax exemptions that you qualify for and red✅uce your taxable income, allowing you to pay taxes on less income. O’Saben recommendܫs keeping track of the exemptions that you qualify for in the 2025 year and possibly taking action to increase your exemptions. 

For example, state and local governments may offer property tax exemptions for some homeowners, which will reduce the amount of property taxes they owe. Contributing to a traditional 401K or a traditional IRA would also reduce your taxable income.

While exemptions will reduce the income the government can tax, credits reduce the taxes you owe. Mahaffy sai🐻d to do your homework on tax credits to lower your tax bill furt🐽her.

For example, households using clean energy sources can take advantage of 澳洲幸运5官方开奖结果体彩网:energy tax credits. Some states offer deductions or credits like the 澳洲幸运5官方开奖结果体彩网:American Opportunity Tax Credit or the 澳洲幸运5官方开奖结果体彩网:Lifetime Learning Credit for parents who are saving for their children's higher🅠 𓆉education.

"I don't want to call them obscure, but it's just not the kind of thing you know as taxpayers do on a day-to-day basis," Mahaffy said.

Federal and state governments may grant tax credits to promote specific behavior or help out househo💧lds. O’Saben recommends utilizing software or a professional to ensure you count all tax credits you qualify for and don’t end up paying more than yoꦐu owe.

“I think sometimes people are fearful of the tax system … [but] software will help to take out some of those uncertainties," O’Saban said.

Jan. 2, 2024, Correction: A previous version of this article misspelled Ed Mahaffy's name.