How can Joanne prevent having a balance due next year?

Joanne can take several proactive steps to prevent having a balance due next year, and all the options presented contribute effectively to this goal.

Increasing the withholding on her Form W-4 allows her employer to take out additional taxes from her paycheck. This means that more of her income is accounted for in advance, which can help to ensure that she meets her tax obligations throughout the year, reducing the likelihood of a balance due when she files her tax return.

Making estimated tax payments is particularly beneficial if Joanne has income that isn’t subject to withholding, such as self-employment income or interest and dividends. By making these payments quarterly, she can balance her tax liability throughout the year, potentially minimizing or eliminating any amount due at tax time.

Using the IRS withholding calculator is another valuable tool. This resource allows Joanne to estimate her withholding needs based on her expected earnings and tax situation for the coming year. By utilizing this tool, she can make informed adjustments to her withholding or payment strategies early on.

By employing all these strategies, Joanne can create a comprehensive approach to managing her taxes, thus reducing or eliminating the chance of a balance due when she files her return. Each option enhances her ability to align her tax payments with her income, making D the best answer as