- Days left
Many taxpayers love getting a big tax refund in April. For some, it's a slush fund that they might not have the discipline to build on their own. They look for several hundred or thousands of dollars back from the government to pay off some bills, make a large purchase, or otherwise improve their financial situation.

Tax preparers have been telling taxpayers for years that it makes no sense to let the government get a bunch of your money via withholding, and then refund it to you sometime later... without paying you any interest. Instead, you could decrease the withholding from your paycheck, and put the extra money in an interest-bearing account for yourself. You make a little on your money, and don't have to wait for the government to refund it to you.

And the recent news that California is going to delay tax refunds makes the case for decreasing your tax withholding even more compelling. The state is running out of cash, and has just announced that tax refunds will be delayed 30 days. Allowing the government to take more money out of your paycheck than you really owe in taxes, and then waiting for the refund, used to seem like a sure way to save money. Now with state governments getting a reality check after years of abusive spending, the idea that your tax money is safe and ready to be refunded to you isn't such a sure thing anymore.

Decrease your tax withholding so that the amount taken out of your paycheck adds up to what you'll really owe at the end of the year. Ideally, you should be even... little or no refund, and little to nothing owed. To decrease your tax withholding, you'll need to fill out a new W-4 form. You want to enter a higher number on that form to ensure that less is taken out of your paycheck.

Increase your money and finance knowledge from home

Timing Your Spending

How to pay less by changing when you purchase.

View Course »

Goal Setting

Want to succeed? Then you need goals!

View Course »

TurboTax Articles

Ways To Increase Your Tax Refund You Never Thought About

Laying the groundwork for a tax refund requires some simple tax planning, a little research and some forethought. Reviewing your tax status, consulting your spouse when filling out your W-4s and taking advantage of several tax credits can help you increase your tax refund. TurboTax also can help decide which credits can get you the biggest refund.

What Extra Tax Deductions Should I Make Sure To Take?

The federal government offers tax deductions and credits to reduce taxable income under certain circumstances. There are several that are often overlooked, including deductions for job hunting, caregiver expenses for dependents and children while you work, a credit to reduce taxes for moderate- to low-income earners and the premium tax credit associated with the Affordable Care Act. TurboTax can help determine if you qualify for these credits and deductions.

8 Things You Think Are Tax Deductible That Aren't

There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.

9 Things You Didn't Know Were Tax Deductions

Few realizations are more painful than realizing that you forgot to include a tax deduction that would have lowered your tax bill or increased your tax refund on your tax return. Here are some tax deductions that you shouldn't overlook.

Add a Comment

*0 / 3000 Character Maximum