Tax planning - do you have the right amount of withholding?

The amount of tax withholding should match with the amount of tax you owe. Many people like to have a refund. In a way it is like giving Uncle Sam an interest-free loan. So, why not pay yourself instead?

Tax planning starts with the correct amount of withholding. If you like to get your money when you earn it rather than waiting a year for a refund, Just file a revised Form W-4 with your employer. The more "allowances" you claim on the W-4, the less tax will be withheld. You can calculate your withholding using the IRS withholding calculator at www.irs.gov/individuals/article/0,,id=96196,00.html  

If you'd like your tax preparer to assist you with the tax planning, the beginning of the fourth quarter of the year or the beginning of the year, January, is usually a good time to review your tax situation and plan for the coming year.