Tax Tip

Tax Tip

 Adjust Your Withholding

When it comes to payroll withholding, you want to get it "just right."

If you over withhold federal taxes, you'll get a big refund. That's nice once a year, but you've sacrificed control of your dollars for the other 364 days. Why give Uncle Sam a free loan of your money all year?

If you underwithhold, you'll end up owing the IRS at filing time. Owing a little isn't too bad, but a big tax bill could be hard to pay. This could cause you to face penalties as well.

It's easy to change your withholding. Just give your payroll office a new W-4. And to make sure that form will get your withholding as close as possible to your eventual tax liability, you can use the IRS' interactive allowances calculator.

Ed and Barbara Heiser/ The Heiser Team

480-830-8030 Office