Not exact matches
US equities: Tracking foreign equities is
always more difficult due to
withholding taxes.
So if you
always owe on state and federal then you can either adjust your
withholding or put money aside in a fund to pay what you owe (though you should consult a
tax pro to make sure you are paying what is required during the year).
This is because
withholding only estimates your
tax but does not
always reflect every credit and deduction you're going to take.
The amounts were
always grossed up so that appropriate amount of
withholding tax could be taken.
It's too late for this year's
tax bill, but consider adjusting your
withholdings with your employer if you
always seem to be in the red at
tax time.
Also, remember,
tax refunds are optional — you can
always change your W4
withholding to owe
taxes each year instead of getting a refund so you never have to deal with this again.
If you hold foreign stocks in a non-registered (taxable) account,
withholding taxes always apply: if a company pays a 20 - cent dividend each quarter, only 17 cents ends up in your account.
Always consider discussing your
withholding options with your trusted
tax preparer before making the described changes.
It
always recommends closely matching your
withholding to your actual
tax bill so your refund is as small as possible.