If you’re employed and you have taxes taken out of your paycheck every pay day then you are paying a form of estimated taxes. The majority of Americans over pay their taxes using this system and here in California with federal taxes which could be 35%, the state taxes that could be 10.3%, and FICA you could be paying over 50% in taxes.

It’s mandatory to have your taxes taken out every pay day, and moreover it’s expedient, however our government has not made it mandatory to over pay your taxes. Taxes are one of the major if not the most major thief prevent us from having more money for ourselves and our families.



Uncle Sam has made it very convenient for us to pay our estimated taxes, so convenient that we don’t look at it as paying estimated taxes. When we hear of someone that the IRS has made them pay estimated taxes we think they’re doing something much different then what we’re doing. When in fact their doing what we all should be doing and that is an analysis of our yearly income to pay the appropriate amount in taxes. Most people who do this type of estimated tax calculation do not over pay their taxes if done correctly and actually keep more money available in the household.



Most of us want the extra money that can be gained from doing our own estimated tax calculation, but most us will not do or are not able to do the worksheet section of our W 4’s. So what do is we count up the number of people living in the house including ourselves and write that number in the box which in most case will cause you to over pay your taxes (not always it can cause you to under pay also). The IRS did have an online calculator for doing your W 4 worksheet, but it’s not available when a checked before writing this.


  Uncle Sam (IRS) did announce that an inflation adjustment will be made to give us some relief

“For 2008, personal exemptions and standard deductions will rise, tax brackets will widen and workers will be able to save more for retirement, thanks to inflation adjustments announced today by the Internal Revenue Service”. More...

 This will help, but to take full advantage of these tax changes you will still need to do a tax analysis calculation and start and or maximize your retirement program. 

Mandatory estimated taxes can be adjusted during the year. Did you know you can stop pay taxes during the year altogether, and not face any penalties or any adverse tax consequences. When you do an estimated tax analysis it can tell you when you will or when you have paid in enough taxes for the year. The tax money you now have as income can be used to pay down a loan, save for a vacation, and much, much more, or if your retirement conscious add this money to your savings program. The bottom line is the money is yours to do whatever you want.

Getting to the money is still the challenge. As I stated earlier doing a tax analysis is challenge.  Helping people with calculating their estimated taxes and assisting in the maximization of retirement programs is what we do. If you are interested in get the most money back you can from the IRS we are here to help.
 
Our Paycheck Analysis: The purpose of this application is to help employees to ensure that they do not have too much or too little income tax withheld from their pay. It is not a replacement for Form W-4, but most people will find it more accurate and easier to use than the worksheets that accompany Form W-4. You may use the results of this program to help you complete a new Form W-4, which you will submit to your employer. Our Paycheck Analysis E-Course E-Book will give you all the step by step information and examples you need to do your own tax analysis.


It’s mandatory for you to pay estimated taxes; however there is ways to control the amount you pay and the government is attempting to give us some tax breaks. And I hope the information I provided here will help you and motivate you to change.

 

Allen Stewart

Tax Saving Experts