If you live in the United States, today marks the deadline to file federal and state taxes. It’s a day that some look forward to because it has turned into a sort of payday, while others dread it because it is a day to pay taxes. There are many reasons why you may owe taxes. Here are the five most common reasons why people owe taxes.
- Too little withheld from their pay
- You can give yourself a raise just by changing your Form W-4 with your employer.
- However, if you do that without careful planning, you might be setting yourself up for an unpleasant year-end surprise.
- Extra income not subject to withholding
- If you sell stock, for example, you may have more income than usual – and a bigger tax bill. Even unemployment benefits can increase your tax bill.
- Self-employment tax
- For many small business owners, self-employment tax is a far bigger burden than income taxes.
- Difficulty making quarterly estimated taxes
- If you have significant non-wage income, you generally make quarterly estimated payments.
- However, that’s easier said than done, especially when people feel like they are in financial survival mode most of the time.
- Changes in your tax return
- The kids grow up and move out, and suddenly you aren’t claiming them as dependents.
- You refinance your home at a lower interest rate. That’s great, but your mortgage interest deduction may have been cut in half.
- Even changes in the tax code can make a difference in your tax bill. If you don’t adjust your withholding when things change, you may owe money.
What To Do If You Owe Taxes
- Refigure your paycheck withholding
- Tax withholding from other income
- Plan for tax on your small business
- Refigure your tax liability and withholding as needed
📖 Bible References 📖
⚖️ Paying Taxes ⚖️
Matthew 22:21 ESV
They said, “Caesar’s.” Then he said to them, “Therefore render to Caesar the things that are Caesar’s, and to God the things that are God’s.
Mark 12:17 ESV
Jesus said to them, “Render to Caesar the things that are Caesar’s, and to God the things that are God’s.” And they marveled at him.
Luke 20:25 ESV
He said to them, “Then render to Caesar the things that are Caesar’s, and to God the things that are God’s.”
Romans 13:7 ESV
“Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed.”
Wishing you all the very best that today can bring. Stand assured that God is always with you, trust in the words of Jesus.
~Charlotte, Seeker of unexpected Comfort, Happiness, Joy and Patience.