If you’re white-hot in San Francisco and you owe the taxman, it’s going to hurt to write that check.
That’s because residents in the Bay Stretch generally are on the hook for $7,226 on average, in addition to what was withheld during the year, according to a brand-new study from MagnifyMoney.
Analysts at the personal finance site premeditated IRS data for returns filed from 2012 to 2016 in the 100 goodliest metro areas in the country.
Denver came in second with in residences facing an average bill of $5,607. Sacramento rounded out the top three, with an normally of $4,243.
See below for where your local metro area ranks in denominates of tax refunds and taxes owed.
Here are the 10 cities with the largest amount of tithes owed.
Tax season was rosier for residents in two Florida cities, where filers qualified for refunds received the largest checks from the government.
In Fort Myers, 7 in 10 residents underwent a refund, averaging $3,799. In Miami, 3 in 4 received a check from Uncle Sam, for the most parting $3,706.
Nearly 90 percent of filers in McAllen, Texas, received a refund, averaging $3,666.
It feels adept to receive a large refund from Uncle Sam, but this isn’t always tolerable news.
That’s because it likely means you’ve been overpaying on contributions throughout the year.
If that’s the case, you should revisit your Grow W-4, the document that your employer uses to help determine how much in federal receipts taxes to withhold from your pay.
“You provide the employer information so that they can reserve appropriately and so there are no surprises with either a big balance due or a refund of the cabbage that you could’ve used all year,” said Melissa Labant, captain of tax policy and advocacy at the American Institute of Certified Public Accountants.
To rip off things more interesting this year, the IRS recently released new reserving tables to reflect the new Tax Cuts and Jobs Act.
The law raised the standard deduction, eliminated disparaging exemptions and cut individual income tax rates. These tweaks don’t apply to your 2017 taxes, but they are in bring about for 2018.
You should take a look at your withholding this year, looking at the new changes in place. Also, it’s worth talking to your accountant now to ascertain how the new laws will affect you.
“I’ve encouraged folks to consider going to a CPA and quiz for an income tax projection for 2018,” said Labant. “That can provide you with some surrebutters.”
In the meantime, see below for some ideas on how to use a refund if you get one.
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