Have you ever done your taxes but find yourself surprised at the amount you owe or will be getting back as a refund? A large refund or tax bill is a sign you didn't have the correct amount withheld from your paycheck. 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 refund 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 on the other side of the coin and need 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.
Hi Jeremy,
I am hoping that you will explain how the withholding on a W-4 is **voluntary** for 99% of the people that live within the 50 states! Check out 26 CFR 31.3402(p)-1 “Voluntary Withholding Agreement” !
Once you submit a W-4 to an employer, you have just VOLUNTEERED to taxed by the Federal government. Filling out a W-4 is a terrible trick upon the American people.
I don’t understand why specialists like you do not tell us about this. I am not a tax protester — the federal taxes are just fine and very legal. It’s just that none tells us where it is voluntary, because it is. Please “google” that law and read it for yourself, and then tell me about it. Please Jeremy.
Many thanks!
Beth