Money Saving Tip: Withhold the Right Amount

Here's something that must be an issue for many people (since the average income tax refund is around $2,000). But use this tip, and you'll save (by earning) money:

Adjust your withholding to reflect your income so you won’t pay too much or too little. A high tax refund is nice to receive but it probably means that you’ve been paying too much. Instead, modify your W-4 and invest that extra money for a better return.

Comments

[mbhunter]

I was guilty of this for this past tax year. You just need to be careful about withholding too little from your paycheck -- you need to come close to withholding the proper amount. IRS publications have the specific rules.