It is common for taxpayers to be surprised to find out if they are due to pay additional taxes or if they will receive a refund on their tax return. In this article, we will analyze the reasons behind these divergent results and give you practical tips to influence the outcome of your return.
One of the most important factors that determine whether you will pay or receive a refund is the level of tax withholding you had during the tax year. If your withholdings were insufficient, you will probably have to pay additional taxes when you file your return. On the other hand, if your withholdings were excessive, you will probably receive a refund for the excess tax withheld.
In addition, other factors, such as additional income not subject to withholding, may influence the final result of your return. Income such as income from rental property or investment earnings may increase your tax liability and affect whether you will pay or receive a refund.
To influence the outcome of your return, it is important to plan ahead and take steps to adjust your tax withholdings as necessary.
You can also consider strategies such as making additional contributions to pension plans or taking advantage of available tax deductions to reduce your tax burden.
With a clear understanding of the factors that influence the outcome of your return, you will be better equipped to make informed decisions and plan your financial situation effectively.
As tax return specialists our goal is to make sure you understand the importance of this process and that you are well prepared to complete it properly. We are here to provide you with expert guidance and answer any questions you may have during this process.
Diana Caballero
CEO – Founding Partner
Martínez & Caballero Abogados
