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Showing content with the highest reputation on 12/28/2019 in all areas

  1. Danny, this site is for tax professionals only, most of whom use ATX software. We don't help the public here, and you would be better served by consulting with your own tax preparer on how best to handle your situation.
    2 points
  2. The employer should do no such thing! Employers should NEVER prepare a W4 for their employee. The employer must follow exactly what the employee directs, via their latest valid W4. There is no item on a W4 which allows for a flat federal amount per pay period (without knowing how to manage several fields, which most employees cannot do). If an employer helps with a W4, giving any advice, then they have inserted themselves into the liability chain, and if tax prep is regulated in their area, have likely offered tax advice without a license/registration. Same goes for "withhold ##%" advice, the employer has no such ability, and the employee will have no idea how to make it happen. Of course, I look at from the employer side, what rules the employer must follow. Unless you prepare payroll and study the withholding regs, such as W4, you would never know, thus my internal insistence on trying to help educate. Not my area, but a thought... W4 prep is an area which could be profitable. For example, $50 to help prepare a federal W4 and a state form (which is a near must now, separate forms), with all or some applied as a credit on their nest tax prep fee. For regular clients, suggested W4 forms with their return, and a paid review in your "slow" season, say early summer, to enhance retention. For getting new clients, maybe a local ad/offer after your vacation once filing season closes, and again in the fall, to try to get their return business. The flaw is some will simply shop for the highest refund, with no thought as to their free loan to the IRS. I have heard that view before, from many, and I understand, but now, with the withholding tables BARELY, if at all, covering liability, and with the states having their own calculation issues, this is an issue few can ignore.
    2 points
  3. We generally tell clients (when they bother to ask) what their annual tax liability was for the past year. We can also help them divvy it up between a married couple, and (barring bonuses, stock options and other perturbations), tell them "tell your employer you want $X withheld for the feds every pay period." The employer can figure out how to do that. I hope!
    1 point
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