Adjust Your Tax Withholding: Tip-of-the-Day #127

DON’T LET THE GOVERNMENT EARN INTEREST ON YOUR MONEY

Have you considered the fact that your paycheck could be the root cause of your money heartache? Here’s a hint: if you get a tax refund when you file in April, that means you're overpaying Uncle Sam for an entire year! You can immediately increase your take-home pay every two weeks by adjusting your tax withholding with your employer. For instance, you may have counted yourself as a "1" since you're a single person without kids. Adjust that slightly to a "2" and you'll see about a $100 difference per paycheck and you likely won't be owing the government anything come year end.

Fact: Most Americans have too much taken from their pay checks each year. Why let the IRS hold your money interest-free? If you received or will receive a refund this year, use a tax withholding calculator to see how much you can add to your paycheck...starting next pay day!