Thursday, April 29, 2010
If you are geting substantial money back from the IRS every year it means you are giving the Federal Government an interest free loan. I assure you they will not return the favor. The solution is to go to your employer and revise your W-4 form. This form can be downloaded from the IRS's website and by their standards is fairly easy to understand. There are several ways you can estimate the number of exemptions you should claim on your W-4 depending on charitable giving, mortgage interest, state taxes and income bracket. If you come up with a number you are not totally comfortable with simply back it down one expemtion. It is always an option to revisit your exemption status after the following tax year.