If you are working and receiving a paycheck, among the many new year's resolutions you should make are the following:
- Review your payroll withholding to determine that it properly reflects your current tax circumstances. This way, you can avoid having too much withheld, resulting in a refund when you file your 2023 tax return. On the other hand, withholding too little can result in the dreaded "balance due" when you complete your return. I may also reduce penalties for underpayment.
- Consider changing your payroll contributions to your retirement plans. Spreading out your contributions over the year is relatively painless and it's good to get this out of the way at the beginning of the year. Most employees can do this online or through your human resouces department.
Tax management is a big part of your overall financial strategy. If you'd like to learn more, we welcome the opportunity to speak with you or coordinate efforts with your tax preparer or certified public accountant in the coming year.
Wishing you a Happy and Prosperous New Year!
Horizon Advisors is a Houston based fee-only wealth management firm. Horizon is a fiduciary advisor. We specialize in helping successful individuals and families understand, organize, and manage their often complex financial situations. Horizon offers integrated financial planning and investment management services.