Don’t expect a refund if you fall under these scenarios.
Ideally, you should not be getting a large bill or a big check from the IRS.
You dont want to be caught off-guard with a hefty bill after filing especially with no understanding of why.
You didnt adjust your withholdings after a major life change.
What I usually see is that people just dont make adjustments.
They do it that one time, and then its like out of sight, out of mind.
You didnt pay self-employment taxes.
Did you start a business or pick up side gigs last year?
They just dont know the ins and outs, she said.
They dont know that they have to pay quarterly taxes, she said.
For some reason, they dont take out the tax, they dont set anything aside, Watson said.
You didnt pay a capital gains tax.
Your overall taxable income helps to determine how much your capital gains tax will be.
You got unemployment benefits.
You withdrew money from your retirement account.
Watson said shes seen taxpayers who are caught off-guard by having to pay an additional 10% tax.
Usually, if youre under 59-and-a-half, you are expected to pay that 10% penalty, Watson said.
You took too many deductions.
The IRS can actually go back and review a couple of years prior, Watson said.
So dont just write off everything as a business expense, especially if you work for yourself.
I see a lot of mistakes made with self-employment from taking too many deductions, Steber said.
Expect to owe taxes?
Here are steps you might take now:
1.
Talk to a professional sooner rather than later.
Keep good records of all of your activity.
2. Review your options for paying.
Build up an emergency fund for unexpected tax bills.
This article originally appeared onHuffPost.
