Mid-Year Checkup: Tax Withholding

We're just kicking off summer, but that doesn't mean you shouldn't do any tax planning today. One of the easiest things you can do to maximize how much you bring home with each paycheck and avoid paying Uncle Sam too much is to adjust your tax withholding. Did you receive a large refund this year? If so, that means you were having too much money withheld from your paycheck. Sure, it's always nice to get a check in the spring, but you're really just giving the IRS an interest-free loan when you could have been making use of those extra dollars.

Having proper withholding isn't just for controlling refunds, but it is even more important if you find yourself needing to write a check to the IRS come April. Nobody likes shelling out more money for taxes, so having your withholding set up appropriately can prevent this. It is a fine line to walk in order to put as much money in your pocket without having to pay up at the end of the year. Luckily, the IRS can help you determine how to set your withholding. Check out the IRS withholding calculator.