11.1.2003Broadcast Email November 2003 2003 Tax Withholding Check-Up A NEW ASSOCIATE AT AWM Aspen Wealth Management is pleased to announce the addition of Troy Kerr, J.D. to our growing list of associates. Troy will focus on financial planning and investment management operations for our clients. He comes to us from Cerner Corporation where he served as Controller for their West Region. Troy received his Bachelors of Science in Business Administration, for the University of Kansas, and his Juris Doctorate from UMKC. He is married, has two young daughters, and enjoys basketball, golf, softball, and many other outdoor activities in his spare time. Please be sure to meet Troy the next time you stop by our office. TAX WITHHOLDING CHECK-UP 2003 Are your payroll tax withholdings in line with your estimated tax liability for 2003? As you probably know, on May 28, 2003, President Bush signed The Jobs and Growth Tax Relief Reconciliation Act of 2003, a tax cut which may decrease your liability when you file your taxes by April 15, 2004. Although this tax cut is effective for the entire calendar year, the change was made official well into the calendar year, long after employers had been withholding federal taxes from your payroll checks at the “old” tax rates. It’s very likely that beginning in June, your payroll systems were updated with new tax tables that recalculate your payroll tax liability based upon the new rates. However, for the first 5 months of the year, you may have been paying in too much tax. Would you rather have a refund due in April? Would you rather come out even? Or would you rather owe? If you would rather have a refund, don’t change a thing. Unless you have significant outside non-salary income, or you have overstated your personal exemptions filed with your employer on your W-4, it is likely that your current federal tax withholding will result in a refund due in April. If in April, you’d rather come out even, or even possibly owe the government a tax bill, then its time to make a quick estimate of your 2003 liability, and possibly adjust your W-4 with your employer. The attached 2003 Simple Tax Estimator will help you with that estimate. This estimator is a simple calculation. It does not take into effect the many complexities of tax calculations in the tax code such as phasing out exemptions and itemized deductions at higher income levels. If these complexities apply to your tax situation, you should have your tax accountant prepare a more accurate estimate for you. (Please email info@aspenwealth.com to request the referenced document.) We hope this tax tip will help you estimate and achieve your goals for tax payments and liabilities for 2003. Once again, this is not a perfect calculation. If you have higher incomes or complex situations, this simple spreadsheet will not accurately estimate your taxes and could significantly impact your tax bill. If this is suspected to be the case, please contact your tax accountant to prepare a more accurate estimate. It’s a pleasure continuing to serve you. Please don’t hesitate to contact us with any questions or concerns you may have.