Every year around this time, I start gearing up for tax season. And every year, I promise myself I won’t wait until the last minute. (Spoiler: sometimes I still do. I’m human.) But the key to a smoother spring is doing a few quick checks in December.
Here’s the deal: A little prep now can save you money, stress, and that “why is this number so high?” moment nobody enjoys.
1. Take a Quick Look at Your Paystub
I remember when I checked my own paystub one December and realized nothing had been withheld for state taxes. Not a fun discovery… but catching it early saved me from writing a painful check later.
The key to success here is making sure the right federal and state taxes are being withheld from your paycheck. It takes two minutes:
- Pull up your most recent paystub.
- Check the federal and state withholding lines.
- Ask yourself: “Does this look right?” (If you’re not sure—totally normal—we can peek at it for you.)
If the amounts seem off or missing, reach out to your employer now so they can update your Form W-4.
2. Update Your Withholding After Big Life Changes
Life happens—marriages, divorces, new names, kids heading off to college… even that new side gig you swore you’d do “just on weekends.”
Any of these can change your tax picture.
The fix is simple: update your W-4 so your paycheck reflects your new reality.
Major life changes that trigger a withholding update:
- You got married
- You got divorced
- You changed your name
- You had a significant change in income
- You added or removed dependents
- You picked up a side hustle or freelance income
Think of it as tuning up your financial engine. Doesn’t take long, but it keeps things running smoothly.
3. Business Owners: Don’t Skip This Part
Here’s one I learned the hard way—sometimes as business owners, we get so focused on running the business that we forget to check in on our own withholdings or estimated tax payments.
The key to success here is doing the same thing you’d tell your employees to do:
Take a quick look at what you’ve paid in so far.
Ask yourself:
- Am I comfortable with how much tax I’ve already paid in?
- Do I need to adjust before year-end?
- Will my income this year be higher or lower than last year?
A tiny adjustment in December can keep you from a surprise tax bill in April… and trust me, no one wants that surprise.
4. When in Doubt, Let Us Run the Numbers
If you’re squinting at your paystub or wondering whether your year has been “normal enough,” don’t worry—you don’t have to guess. We can run a quick tax projection and make sure you’re on track.
Honestly, this is the kind of thing people put off because it feels overwhelming, but once you do it, it’s like cleaning out the garage. It feels amazing afterward.
Final Thoughts
Here’s the deal: Preparing for tax season doesn’t have to be stressful. A few small steps in December can set you up for a smoother, easier spring—no scrambling, no surprises, no wondering if your W-4 is still the same one you filled out 12 years ago.
If you’d like help reviewing your withholdings or getting ahead of tax season, we’re here for you. Just reach out.