Jackson Hewitt Tax Pros Encourage a Mid-year
Tax Checkup to Ensure a Better Tax Filing Experience
JERSEY CITY, N.J.,
July 23,
2024 /PRNewswire/ -- There are still six months left
in 2024, giving hardworking Americans ample time to make financial
changes that can positively impact the results of next season's tax
returns. The experts at Jackson Hewitt Tax
Services® are encouraging all Americans to do a
mid-year tax checkup and create a personal financial plan for the
remainder of the year. In fact, according to a recent survey
conducted by Jackson Hewitt, 43
percent of people are planning to do a mid-year checkup – which
implies that 57 percent of taxpayers are mistakenly not planning to
take any action in reviewing the progress and current status of on
this year's taxes to date.
"It's incredibly important for taxpayers to do a mid-year tax
checkup and plan for the rest of the year, especially if they
experience life changes or have a change to their personal
finances. It's also the best window of time to make strategic
adjustments, especially for those unhappy with last years' tax
refund size or an IRS balance due at tax time," said
Mark Steber, Chief Tax Information Officer, Jackson Hewitt Tax
Services. "According to our recent survey, we found the majority of
people are experiencing financial changes that can make an impact
to their taxes at tax filing time. Take the right measures now, so
there are no surprises at tax time by either owing the IRS and
state a bigger balance or receiving a smaller tax refund
overall."
According to Jackson Hewitt's
survey, the following relates to people's personal finances thus
far in 2024:
- 30 percent have had a change in their base income/salary
- 29 percent have donated to charitable organizations
- 27 percent have had to find new sources of income in order to
make ends meet
- 23 percent have invested in traditional stocks or
cryptocurrencies
- 9 percent have won money via gambling, sports
betting, or the lottery
- 3 percent have collected unemployment income
"Taxpayers can flex more control over their finances by
adjusting their withholdings on their W-4 on file with their
employer throughout the year," said Steber. "In fact, nearly 30
percent of recent survey respondents don't know if they are
withholding the right amount on their W-4, and an additional 30
percent of people don't realize that they can adjust their tax
withholdings at any time. In reality, you can work with your
employer and adjust your withholdings, as often as you want, to
ensure that your take-home pay best suits your personal financial
situation."
"The same advice goes for the self-employed. Either full time or
with part-time employment, it's equally important to look at your
tax situation to make sure you are properly paid to-date," said
Steber. "This is important for two reasons. First, it is the rule
that if you are earning money from self-employment activity, you
are required to pay federal income, state income, Social Security
and Medicare taxes quarterly if you owe, not just at tax filing
time. Secondly, and equally important, if you do not monitor your
other self-employment income, corresponding taxes, and tax
liabilities, it can have an unexpected and sizable impact on your
regular income and tax outcome at tax time."
How to do a mid-year tax checkup and plan?
- First, taxpayers should review the prior 2023 tax return with a
Jackson Hewitt Tax Pro.
- Next, taxpayers should review current income and expenses,
compare current-year life facts with the 2023 return, and discuss
what can impact the remainder of 2024.
- Taxpayers should evaluate sources of earned income (for
example: from traditional W-2 employment, side gigs, investments,
etc.) and understand how much total money was made in the first
half of the year, as well as what's taxable.
- Then, taxpayers should think of notable personal changes from
this year that have or will happen by December 31, 2024, including a change in
dependents, employment status, new or different earnings and
income, as well as marital status.
- With this information, taxpayers can calculate a mid-year tax
estimate for the first half of the year, then double or annualize
an estimate for the full year's income, taxes due, and taxes paid
in so far. Then, a projection can be made for what the end of year
will look like for income, taxes and tax refund or balance of taxes
due to the IRS.
- Finally, start now and organize all financial records, which
will help during tax filing time.
If taxpayers aren't happy with the estimated tax refund, or
projected balance due, it's the ideal time to take action – and
Jackson Hewitt Tax Pros can assist clients with proposed
adjustments and strategize for the best-case scenario and
results.
"Doing a mid-year tax checkup and creating a plan for the
remainder of the year, such as identifying tax breaks you can
benefit from or how to make adjustments to qualify for a tax credit
or deduction, can be helpful and is essential for starting and
maintaining financial health," said Steber. "This proactive
approach does not have to be complex, complicated, nor time
consuming, and helps prepare taxpayers now, rather than being
surprised and stressed at tax time."
For more information visit jacksonhewitt.com, and to schedule a
mid-year tax checkup appointment at a Jackson Hewitt office visit
jacksonhewitt.com/officelocator.
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt
Tax Service Inc. is an innovator in the tax industry with a
mission to provide its hardworking clients access to simple,
low-cost solutions to manage their taxes and tax refunds.
Jackson Hewitt is devoted to helping
clients get ahead and stands behind its work with its Maximum
Refund Guarantee and Lifetime Accuracy Guarantee®
(restrictions apply, see Jackson
Hewitt's website for more details). Jackson Hewitt has more than 5,200 franchise and
company-owned locations nationwide, including 2,700 in Walmart
stores, making it easy and convenient for clients to file their
taxes. For more information about products, services, or offers, or
to locate a Jackson Hewitt office,
visit jacksonhewitt.com or call (800) 234-1040.
Survey Methodology
The opt-in survey was commissioned
by Jackson Hewitt between June 28 and July 3, 2024, among 1,000
American adults aged 18 and older, and conducted online by Dynata.
Respondents of the survey were selected from those who volunteered
to participate in online surveys. One thousand complete surveys
were collected using the sample framework based on U.S. Census data
for age, ethnicity, gender, region, and income.
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SOURCE Jackson Hewitt Tax Service Inc.