April, the dreaded tax month, is on the horizon and it isn’t too early to start thinking about what you may owe to Uncle Sam.
The nice thing about crunching some numbers now is that there is still time to play the numbers in your favor. For instance, if you make estimated quarterly payments (like I do for my home business) then you can still adjust your Q4 payment, due 1/15/2014. This might help you avoid a penalty for paying too little. It might also save you from getting a refund (aka a 0% loan to Uncle Sammie). Also, you can still contribute to your tax protected retirement plan until April. If you are toeing the line between tax brackets a large contribution to your retirement account may put you into a lower bracket. Below are the tax brackets for 2013.