Don't Give the Government an Interest Free Loan!



Did you get a tax refund this past year? 
That's great, but you gave the government an interest free loan and squeezed you own cash flow to boot.  Time to change that!

The importance of proper tax planning begins with using the IRS Withholding Calculator to adjust your withholding to bring it even or owe a little bit (be careful owing too much opens you to penalties).  With September 1st around the corner, now is the time to check and adjust your withholding with a few months left in this tax year.

Another tip is to do a rough run on your taxes in early February after you get your W-2's and see if you owe or if you get a refund.  If you owe, than wait to file at the last minute.  If you are getting a refund, by all means file pronto and get your money.

Finally, when you adjust your withholding and see more money-- do something positive with it.  Increase or start your contributions to your 401(k) or fund an emergency account or get more insurance coverage with at least some of this new found wealth.

 

 

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