10 New Year’s Financial To Do’s (You’ll Feel Great When You Check Them Off)
Most people are cautiously optimistic that 2021 will be a lot better than 2020. But while you’re probably looking forward to a time when life can finally return to some semblance of normalcy, there are a number of steps you can take right now to make sure that your financial life is also in good order.
1. Adjust your withholding taxes if necessary
You may not get your 2020 Form W-2 wage and tax statements until the end of the month, but your last paycheck will give you a good idea of how much was withheld in taxes. If the figures are similar to what you earned in 2019, you might want to slightly reduce your withholding rates (if you received a large refund last year) or slightly increase them (if you ended up owing taxes). Your accountant can help figure out your “tax goldilocks zone.”