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Adjusting Your Tax Withholding

You may want to adjust your tax withholding, especially if you are getting a sizable refund or had to pay the IRS. By adjusting how much money is deducted from your paycheck, you can ensure you are paying just enough to cover your taxes. The perennial question is how many exemptions you should claim on your paycheck? And this is a question that stumps even tax professionals. The answer depends a lot on your level of income, how many jobs you have, other income you might have, and deductions you expect to claim. The best way to get a more precise answer is to use the worksheet found in Form W-4. This worksheet will help you estimate your 2008 taxes more precisely, resulting in a better level of payroll deduction for taxes.
Wednesday April 16, 2008 | comments (0)

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