DENVER (CBS4) – Hitting the tax withholding “sweet spot’ takes some finesse.
None of us want to give the government an interest-free loan, nor do we want to owe taxes. If we’re able to adjust our exemptions accurately, we can potentially make money from investments throughout the year, instead. So it’s possible to save money in the end.
That’s why it pays to take a look at your withholding a couple of times of year — especially if you’re married (because of the marriage penalty tax).
Here’s the withholding calculator the IRS provides: http://www.irs.gov/newsroom/article/0,,id=174478,00.html
I’m no financial planner, so here’s a great article on how to save money by claiming the proper exemptions: http://financialplan.about.com/cs/taxes/a/TaxWithholding.htm
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