SURVEY FINDS MAJORITY OF AMERICANS SEE CHANGES IN 2024 PERSONAL FINANCES

News provided by

Jul 23, 2024, 09:05 ET

Jackson Hewitt Tax Pros Encourage a Mid-year Tax Checkup to Ensure a Better Tax Filing Experience

JERSEY CITY, N.J., July 23, 2024 /PRNewswire/ -- There are still six months left in 2024, giving hardworking Americans ample time to make financial changes that can positively impact the results of next season's tax returns. The experts at Jackson Hewitt Tax Services^® are encouraging all Americans to do a mid-year tax checkup and create a personal financial plan for the remainder of the year. In fact, according to a recent survey conducted by Jackson Hewitt, 43 percent of people are planning to do a mid-year checkup – which implies that 57 percent of taxpayers are mistakenly not planning to take any action in reviewing the progress and current status of on this year's taxes to date.

"It's incredibly important for taxpayers to do a mid-year tax checkup and plan for the rest of the year, especially if they experience life changes or have a change to their personal finances. It's also the best window of time to make strategic adjustments, especially for those unhappy with last years' tax refund size or an IRS balance due at tax time," said Mark Steber, Chief Tax Information Officer, Jackson Hewitt Tax Services. "According to our recent survey, we found the majority of people are experiencing financial changes that can make an impact to their taxes at tax filing time. Take the right measures now, so there are no surprises at tax time by either owing the IRS and state a bigger balance or receiving a smaller tax refund overall."

According to Jackson Hewitt's survey, the following relates to people's personal finances thus far in 2024:

30 percent have had a change in their base income/salary
29 percent have donated to charitable organizations
27 percent have had to find new sources of income in order to make ends meet
23 percent have invested in traditional stocks or cryptocurrencies
9 percent have won money via gambling, sports betting, or the lottery
3 percent have collected unemployment income

"Taxpayers can flex more control over their finances by adjusting their withholdings on their W-4 on file with their employer throughout the year," said Steber. "In fact, nearly 30 percent of recent survey respondents don't know if they are withholding the right amount on their W-4, and an additional 30 percent of people don't realize that they can adjust their tax withholdings at any time. In reality, you can work with your employer and adjust your withholdings, as often as you want, to ensure that your take-home pay best suits your personal financial situation."

"The same advice goes for the self-employed. Either full time or with part-time employment, it's equally important to look at your tax situation to make sure you are properly paid to-date," said Steber. "This is important for two reasons. First, it is the rule that if you are earning money from self-employment activity, you are required to pay federal income, state income, Social Security and Medicare taxes quarterly if you owe, not just at tax filing time. Secondly, and equally important, if you do not monitor your other self-employment income, corresponding taxes, and tax liabilities, it can have an unexpected and sizable impact on your regular income and tax outcome at tax time."

How to do a mid-year tax checkup and plan?

First, taxpayers should review the prior 2023 tax return with a Jackson Hewitt Tax Pro.
Next, taxpayers should review current income and expenses, compare current-year life facts with the 2023 return, and discuss what can impact the remainder of 2024.
Taxpayers should evaluate sources of earned income (for example: from traditional W-2 employment, side gigs, investments, etc.) and understand how much total money was made in the first half of the year, as well as what's taxable.
Then, taxpayers should think of notable personal changes from this year that have or will happen by December 31, 2024, including a change in dependents, employment status, new or different earnings and income, as well as marital status.
With this information, taxpayers can calculate a mid-year tax estimate for the first half of the year, then double or annualize an estimate for the full year's income, taxes due, and taxes paid in so far. Then, a projection can be made for what the end of year will look like for income, taxes and tax refund or balance of taxes due to the IRS.
Finally, start now and organize all financial records, which will help during tax filing time.

If taxpayers aren't happy with the estimated tax refund, or projected balance due, it's the ideal time to take action – and Jackson Hewitt Tax Pros can assist clients with proposed adjustments and strategize for the best-case scenario and results.

"Doing a mid-year tax checkup and creating a plan for the remainder of the year, such as identifying tax breaks you can benefit from or how to make adjustments to qualify for a tax credit or deduction, can be helpful and is essential for starting and maintaining financial health," said Steber. "This proactive approach does not have to be complex, complicated, nor time consuming, and helps prepare taxpayers now, rather than being surprised and stressed at tax time."

For more information visit jacksonhewitt.com, and to schedule a mid-year tax checkup appointment at a Jackson Hewitt office visit jacksonhewitt.com/officelocator.

About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. is an innovator in the tax industry with a mission to provide its hardworking clients access to simple, low-cost solutions to manage their taxes and tax refunds. Jackson Hewitt is devoted to helping clients get ahead and stands behind its work with its Maximum Refund Guarantee and Lifetime Accuracy Guarantee^® (restrictions apply, see Jackson Hewitt's website for more details). Jackson Hewitt has more than 5,200 franchise and company-owned locations nationwide, including 2,700 in Walmart stores, making it easy and convenient for clients to file their taxes. For more information about products, services, or offers, or to locate a Jackson Hewitt office, visit jacksonhewitt.com or call (800) 234-1040.

Survey Methodology
The opt-in survey was commissioned by Jackson Hewitt between June 28 and July 3, 2024, among 1,000 American adults aged 18 and older, and conducted online by Dynata. Respondents of the survey were selected from those who volunteered to participate in online surveys. One thousand complete surveys were collected using the sample framework based on U.S. Census data for age, ethnicity, gender, region, and income.

SOURCE Jackson Hewitt Tax Service Inc.