DWA Tax Firm

A big tax refund sounds like a win but it can be an L

Because when you get a refund, it usually means one of two things.

1.) You qualified for refundable tax credits

2.) You over-withheld all year aka you gave the IRS an interest-free loan

Your money should be working for you all year - not parked at the IRS.

W-2 taxpayers, avoid this common mistake! 🚫

Most of the time when I file a W-2 taxpayer’s return and they owe, it’s because they have multiple W-2s and aren’t withholding correctly.

Here’s what happens: each job withholds taxes like you’re in a lower tax bracket and like it’s your only job. But when all your income combines, it can push you into a higher tax bracket and that’s when you get hit with a surprise balance due.

Don’t make this mistake. Use the IRS free Withholding Estimator and update your W-4 so you’re set up the right way.