You have six months of financial info to use for some quick math about your year as a whole, and to prepare for a pleasant upcoming tax season.
To begin, all you have to do is take your cash flow for the first half of the year, and multiply by two. Add up your wages, dividends, interest, and any other income, and thenâ€“if this represents approximately what youâ€™re expecting for the second half of the yearâ€“double the sum.
Once you have your estimated 2011 income, give us a call (or send me an email), and weâ€™ll help you determine the appropriate tax rate and deductions to apply. Because once youâ€™re armed with this info, we can help you determine the amount of taxes you might expect to owe for 2011.
By then comparing this against your projected withholding, you can adjust the withholding on your paycheck in advance as needed, and ensure a happy visit to our office in the early winter.
This can also be a good time to organize your financial records and/or get started with some financial software. (Quicken, Microsoft Money, or the free online utility www.Mint.com are some popularly available options for this.) Getting organized now can make gathering a report of all those deductions a breeze come tax time!