It’s nice to get a tax refund from Uncle Sam, but that refund is essentially an interest-free loan you gave to the government over the course of the year. Instead, you could find a few more dollars in every paycheck, all year long. It’s your money—why wait to get it?
The IRS has made it easier to get your estimated tax withholding correct when you file your W-4 form with your employer. The form has five steps to determine your tax liability. You don’t have to file this new form unless you start a new job at a new company. But if you think you have too much income tax taken out of your paychecks, you can ask to update your W-4. The IRS has a tax withholding calculator (www.irs.gov/individuals/tax-withholding-estimator).