Tax Tip of the Week
900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
For the week of
May 8, 2000
Check your tax payments for 2000
Whether you pay your taxes through withholding or you make
quarterly estimated tax payments, you should take steps now to ensure that your 2000 tax payments will be correct.
Your tax bill in 2000 could vary from last year's tax for many reasons. If you or your spouse get a new job or
leave a job this year, your income may change. You may qualify for credits this year that you didn't qualify for
last year, such as the $500 child credit, the HOPE scholarship credit, or the lifetime learning credit. If your
income decreases or if you can take advantage of the new tax credits, you may be able to lower your tax withholding
or quarterly estimated tax payments and put more money in your pocket now. The opposite is true if your income
rises. In that case, you may have to increase your withholding or quarterly tax payments.
If you make quarterly tax payments, you should be aware of a change in the requirements for 2000 if your income
is greater than $150,000. Last year, the prior-year "safe harbor" rule required that your estimated tax
payments and withholding add up to 105% of your prior year's tax liability. This year, to meet that safe harbor
requirement you must pay 108.6% of your 1999 tax.
Now is the best time to estimate your 2000 tax
liability and to adjust your withholding or quarterly estimates accordingly. For help in determining the right
amounts, contact our office.
Click here to view previous tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list
to receive other tax-cutting information from time to time, please contact our office. We're here to help.
