Many taxpayers today don’t really know how much income tax they actually paid with their 2021 tax filing. A few can tell you something more general like, “I got quite a refund” or “I paid a lot and it hurt!”, but not many can really tell you how much tax they actually owed. That’s a shame in our “plugged in” world where your mortgage company, credit card company, crypto wallet service, Amazon, Credit Karma etc. have all done their best to have you interact on a regular basis. They send you reminders, offer you guidance and try to inform you in some way of your ongoing status.
Ask a taxpayer what bracket they are in and they might answer, “I don’t know, maybe 20%” (there is no 20% bracket). But ask them how much they have in current credit card debt and they can tell you to the penny simply by checking their credit card app.
So, why isn’t there a Tax App that shows you what you owe and for what years, what you paid last year, etc.? One that shows you where you’re at in withholding and that gives you hints each month on how to lower your tax bill? The IRS hasn’t created one, and isn’t likely to any time soon. In general, they would prefer that you spend as little time thinking about your tax bill as possible, so you won’t be tempted to think of ways to lower it proactively. However, there IS a way to achieve the benefits of proper advanced tax planning. It’s just not an app. It’s a phone call to and a meeting with a tax planner!
Call a tax planner now and start learning what you can do to affect your tax outcomes this year and in future years. It will be the best thing you’ve done for yourself in a long time!
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