Don’t let penalties for underpaid taxes increase your tax bill next April. Check the total tax you’ve paid in for 2012 through withholding and/or quarterly estimated payments. If you’ve underpaid, consider adjusting your withholding for the final pay periods of 2012.
Withheld taxes are considered paid in equal amounts during the year regardless of when the tax is withheld. Therefore, a year-end adjustment to your withholding could help you avoid a penalty.
Tags: tax penalties
Written by: Doug Rodrigues