Wednesday, March 10, 2010
Adjust your tax withholding to save more monthly
If you're getting a refund from the Internal Revenue Service (IRS) this year, stop and ask yourself why. The refund is a result of your election to let the IRS have that money for more than a year before giving it back--without paying you interest.
Paying in to the IRS more than you owe is forced saving, true--and building savings is a worthy goal. But if you'd rather adjust your withholding to put more money in the bank monthly, check out this withholding calculator on the IRS website. It will help you determine how to adjust your withholding to help prevent you from withholding too much or too little. Use your most recent pay stub and income tax return to help you input the numbers for a more accurate figure.
Portions of this article were derived from Home & Family Finance.