Monday, July 24, 2017

Check Withholding Now to Avoid Surprises at Tax Time

The federal income tax is a pay-as-you-go system. Employers generally withhold tax from workers’ wages. Taxpayers also often have taxes withheld from certain other income including pensions, bonuses, commissions and gambling winnings.

People who do not pay tax through withholding, like the self-employed, generally pay estimated tax. In addition, those who earn income such as dividends, interest, capital gains, rent and royalties are usually required to make estimated tax payments.

Each year, because of life events like changes to household income or family size, some people get a larger refund than they expect while others find they owe more tax.

To prevent a tax-time surprise, the IRS offers these tips:

  • New Job. When starting a new job, an employee must fill out a Form W-4, Employee's Withholding Allowance Certificate. Employers use this form to calculate how much federal income tax to withhold from regular pay, bonuses, commissions and vacation allowances. The IRS Withholding Calculator tool on IRS.gov is easy for taxpayers to use to figure how much tax to withhold to avoid surprises.
  • Estimated Tax. People who have income not subject to withholding may need to pay estimated tax. Those expecting to owe $1,000 or more than taxes withheld from their wages may also need to make estimated tax payments to avoid penalties. The worksheet in Form 1040-ES, Estimated Tax for Individuals, helps to figure the tax.

Wednesday, July 19, 2017

Before Your Kids Go Off To College, Get These Legal Documents In Place

For college-bound freshmen and their parents, this is an exciting summer, full of anticipation. The kids are becoming adults, and are ready and eager to take responsibility for their own lives.

Amid all this excitement, it is easy for parents to forget that they are no longer the natural legal guardians of their college-age children, and so they are no longer authorized to make personal, medical or financial decisions for them.   At age eighteen, your children become adults in the eyes of the law.

Consider every parent’s nightmare.  You get a long-distance phone call from your child’s college saying your son or daughter has a critical illness or has been in a serious accident.  Then your nightmare gets even worse.  You phone the hospital, only to be told that federal law prohibits disclosure of any confidential information about your son or daughter’s medical condition, even though you are their parent.

You hop on a plane, perhaps assuming that you can take control of the situation when you arrive.  Instead, the hospital still won’t talk to you, and you are told that you cannot make important personal or medical decisions for your unconscious child.  Instead, you will have to go to court to begin the long and expensive process of being named your child’s guardian and conservator.

Tuesday, July 4, 2017

Happy 4th of July from NFS

We remain the land of the free because we are the home of the brave.

As we celebrate Independence Day, take a moment to remember those who fought for our freedoms and gave their all for you and me.

We truly appreciate your business.