“It’s not too late for taxpayers to make changes that will improve their 2012 tax outlook,” said Elaine Smith, enrolled agent and master tax advisor for H&R Block. “Several major life changes that many people experience in the summer can have a huge impact on their tax liability.”
Summer might seem like a quiet time, but this is the time of year when there are the most babies born, the most weddings are held, the most people relocate to new cities, and millions of young adults strike out on their own (or return home) after finishing high school and college. When these things happen, lives changes and that impacts tax outlook. Guidance on how to make the most of these changes is critical; an estimated 2 in 5 taxpayers don’t update their W-4 when they should, which includes when they experience major life changes.
Form W-4 determines how much federal income tax is withheld from every paycheck by factoring in the number of allowances claimed and marital status. Taxpayers who were either uncomfortable with how much they had due in taxes or the size of their refund could benefit from changing the information on their W-4.
“Looking at last year’s return and making an estimate on a taxpayer’s 2012 return can reveal opportunities to get a jump on retirement saving and learn about tax credits and deductions they will be eligible to claim,” Smith said.
Even though it is the so-called tax “off-season,” now is a good time to make changes to improve tax outlook. H&R Block, with 4,000 offices open year-round, At Home ® online and the all-new, face-to-face web solution Block LiveSM, offers taxpayers multiple options to meet their filing obligations. Taxpayers can call 800-HRBLOCK for more information or visit www.hrblock.com to find an office near them, start their return online or log in to Block Live.
About H&R Block
H&R Block, Inc. (NYSE: HRB) has prepared more than 575 million tax returns worldwide since 1955, making it the country’s largest tax services provider. In fiscal 2011, H&R Block had annual revenues of $3 billion and prepared more than 24.5 million tax returns worldwide, including Canada and Australia. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 100,000 professional tax preparers, and through H&R Block At Home™ digital products. The H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.