CHECK YOUR WITHOLDING
• If you are employed at a company, this month is a good time to make certain that enough federal income tax has been withheld from your pay during the year.
• If you determine that your company has withheld too little, adjust your withholding now. Complete a new form W-4 and be sure to put an amount on line 6. You'll have penalties & interest on April 15th if you are not paying enough taxes during the year.
• If too much has been withheld, complete a new W-4 and change lines 3 and 5.
• The same is true if you are self-employed. Make certain that your quarterly payments will cover your tax bill for the year. Otherwise, penalties & interest will be added to your tax bill on April 15th.