Now is a good time to review your 2021 tax situation

Summer time means vacation but also could mean summer or part-time jobs, kids summer camps, etc. Part-time jobs and summer camps can affect your tax return. And now is also a good time to review your tax situation even if you don’t have a summer or part-time job. Reviewing your income and income tax withheld on your latest earnings slip gives you time to adjust your withholding over more pay periods to avoid penalties for not having enough tax paid in at the end of the year. Fill out a new W-4 and provide to your employer.

If you are self-employed, your next estimated payment is due September 15, 2021, so now is a good time to look at the income you’ve already earned and whether your business will increase or decrease for the remaining months of the year. If your business has steadily increased now that the COVID restrictions are easing, you might consider making an additional estimated payment now to avoid future penalties or at least adjust your September estimated payment.