IRS

IRS

Midyear Tax Strategies to Trim Next Year's Bill

These midyear tax strategies can trim next year’s bill from the IRS and reduce 'unwelcome surprises'. Whether you typically receive a tax refund or a bill, there’s still plenty of time to improve next year’s filing, experts say. Here are four moves to consider:

1. Review Your Withholding

Take a look at your current withholding to ensure you are having the right amount of taxes taken out of your paycheck. Adjusting your withholding can prevent you from owing a large sum come tax time.

2. Contribute to Retirement Accounts

Contributing to retirement accounts such as a 401(k) or IRA can lower your taxable income, reducing the amount you owe to the IRS. Take advantage of these accounts to save for retirement while also saving on taxes.