We dedicated this week’s episode to another mailbag question from our listeners related to tax withholdings. Here in the U.S., most people set some money aside throughout the year from their income and/or estimated tax payments, to be put toward their income tax bill for the year. Then they cross their fingers when it comes time to file their return, hoping that they don’t owe any more than what they’ve set aside.
In this week’s episode Grant covers the ins and outs of tax withholdings, and answers a listener’s question on whether they should adjust their withholdings for 2024.
Show Notes
[04.00] W-4 Forms – Grant explains why you need to be accurate when you are filling out a W-4 form.
[05.58] Self-employment income – Grant talks about the responsibility of paying the estimated taxes for self-employment incomes.
[07.16] Estimated taxes – Grant explains why estimated taxes exist.
[12.19] Safe Harbor - Grant explains the easiest way to proceed with the estimated tax payment.
Resources
IRS Documentation on Estimated Tax Payments
https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
IRS Documentation on Tax Withholdings
https://www.irs.gov/newsroom/tax-withholding-how-to-get-it-right