How much do you really know about taxes?

In an Ohio Credit Union League 2019 consumer survey, the majority of respondents, 62 percent, know how much they pay in income taxes each year. But 38 percent of respondents admitted they haven’t been paying attention.

The Government Accountability Office reported that 21 percent of taxpayers, about 30 million Americans, are being under-withheld by their employers as a result of the new tax law. These taxpayers could be stuck with an unexpected bill from the IRS in April. According to the Government Accountability Office, the IRS has recommended that Americans remain diligent about checking their withholdings, especially as the new tax laws take effect.

Failure to understand certain tax nuances can become costly. Here are some tips to help you be successful in the new tax season.

Start Getting Organized Now

It might be tempting to wait until the tax deadline looms to start thinking about filing, but you stand a better chance of getting the most out of the system if you file carefully and rationally.


Adjust Your Exemptions and Withholdings

Check your current W-4 form to make sure you’re claiming all the allowances that make sense for you. Also, make sure your employer isn’t over-withholding or under-withholding money from your paycheck.


Understand What Money is Taxed and What Isn’t

Specific accounts in the U.S. are exempt from taxation. For instance, growth and earnings in a Roth IRA aren’t taxed.


Understand What You Can Deduct from Taxes

Most taxpayers understand that charitable donations can be deducted from taxes. But, the average consumer typically overlooks a host of other possible deductions throughout the year.


Always File Taxes – No Matter What

In the eyes of the IRS, late is better than never. Even if you’re having a difficult time getting the documents together and know you’ll miss the deadline, be sure to file, eventually.


Get Help

If you’re confused about any portion of your taxes or feel you’re not receiving all the deductions you should, seek help.


Learn more about how Day Air Credit Union can help you prepare for a fantastic future by visiting dayair.org.