Are you doing your taxes and surprised at the amount you owe or will be getting back as a refund? A large refund or tax bill is a sign you didn't have the correct amount withheld from your paycheck. One of the easiest things you can do to maximize how much you bring home with each paycheck and avoid paying Uncle Sam too much is to adjust your?tax withholding. ?Sure, it's always nice to get a refund check in the spring, but you're really just giving the IRS an interest-free loan when you could have been making use of those extra dollars. That could mean more money in your pocket each month to put towards everyday expenses, pay down debt, or tuck away for retirement.
Having proper withholding isn't just for controlling refunds, but it is even more important if you find yourself on the other side of the coin and need to write a check to the IRS come April. Nobody likes shelling out more money for taxes, so having your withholding set up appropriately can prevent this. It is a fine line to walk in order to put as much money in your pocket without having to pay up at the end of the year. Luckily, the IRS can help you determine how to set your withholding. Check out the IRS withholding calculator.
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