Adjust Your Withholding

May 07 2012

Published by at 7:02 am under Taxes

This content is provided courtesy of USAA.

How did your tax return look?

If you got a big refund, think twice before celebrating. That only means you gave the government an interest-free loan during the year. On the other hand, if you ended up owing Uncle Sam a large amount, the IRS may have charged you interest and penalties for under-withholding. Fine-tune your withholding to make sure you’re closer to what you owe next time around.

Put Your Refund to Work

If you’re getting a tax refund, ask the IRS to deposit it directly into your checking or savings account.

Once the money is safely in your account, use it to make your financial future more secure:

  • Pay down debt.
  • Build your emergency fund.
  • Consider an IRA.
  • Save it for college.
  • Repair or renovate your home.

Protect What Your Landlord Won’t

If you rent, your landlord’s insurance probably doesn’t cover your possessions, which means a fire or break-in could cost you dearly. You also may not be protected if a guest or visitor is injured in the house or apartment you’re renting. A renters policy can cover all those risks for a modest price.

The preceding discussion is not tax, legal or estate planning advice. Consult with your tax, legal or estate planning professional regarding your specific situation.

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