This blog is written by Mr. M. Wasim Roshan, Sr. Associate Taxation and Audit Services. Please read this blog and provide your valued Comments.
Four Things You Can Learn from Your Tax Return
According The Tax Year 2017.
If you already started away your tax return, you may want to dig it back out. There are a variety of things you can discover by reviewing each form and understanding the significant impact your taxes can have on your financial health.
Now is a great time to take a second look at your return and discover ways you can make a difference in your tax outcome next year.
- The reality of your refund
Every year, nearly seven out of ten Pakistani tax filers receive a tax refund, and according to the RTO, the average amount paid is close to RS. 3,000. Many of those Pakistani are elated to see that money hit their bank accounts as they already have big plans to spend it.
Therefore, adjusting your withholding tax to better match your situation tax will help you avoid temporarily giving it up to the RTO.
- Tax bills happen
If you had to pay a significant tax bill after you filed your tax return, you have the opposite problem as someone who received a refund.
Owing money is always stressful, but when other people are talking about their big refunds, you start to question what went wrong.
- How to pay less tax
After you file your tax return, it’s easy to only focus on the amount of money you owe or the amount you’re getting back in a refund. However, that’s not the whole picture.
Take a look at your return and add together your total taxes. Don’t forget to include Social Security, state income taxes and property taxes.
- Tax brackets matter
To make smart tax decisions, you must know your Tax breaker. Understanding which tax bracket you fall into can help determine if a particular tax deduction will benefit your tax situation.
Generally, when you’re in moderate-income tax brackets, you’re better off getting the highest return you can on your money, even if you pay tax on it.
Muhammad Wasim Roshan