From our Free-Lance Correspondent

When you begin to work for a company in the U.S., you will be asked to fill out a W-4 form. This tells the payroll office how to deduct from your paycheck for state and federal taxes. In an ideal world, what is calculated and deducted from your salary or wages would match the amount determined by your 1040 (or other) tax form after the end of the year. As we all know, however, we do not live in a perfect world and the U.S. is a part of that world.

Some folks tend to think they are doing well if they get a large sum back from the state and federal governments as a tax refund. This usually means, however, that your deductions need to be recalculated so that less is taken from your take-home pay. If you are receiving your money through the course of the year you can use it or invest it, rather than lending it to the government to use until they return it to you! Likewise, if you owe huge amounts to the state and federal governments on your taxes, you could have your deductions re-calculated and more withheld from your take-home pay. However, if you can plan for the amount you will owe and invest it wisely for the short term, you will come out ahead when it is time to settle up.

Tax laws are constantly being changed and it is no longer an easy task to figure your own. If you do, you risk making errors which will cost you and cause the Internal Revenue Service to audit you or there may be allowances or credits to which you are entitled but unaware unless you have your taxes prepared by a certified public accountant. We recommend that you avail yourself to this service, at least for the first year you are in the U.S. You may want to attempt to do it yourself after you have had a professional take care of it the first year. If you do so, be sure to keep up with the changes in tax laws.