Monday, April 19, 2010

How to Avoid Giving Uncle Sam a Free Loan

From Market

With April 15 behind you, it's time to breathe a sigh of relief. But if you got a tax refund this year, consider making changes now to avoid giving the government an interest-free loan until next April.

Organizing your finances so that you get no refund and owe nothing when you file your return is the ideal touted by some financial planners. Managing your taxes is not easy.

Still, by adjusting your withholding now you can at least reduce your refund.

"There are lots of people who say any refund is too big because they don't want the government to have their money and not [pay] interest on it," said Diane Winland, certified public accountant and certified financial planner at Financial Finesse Inc.

Winland said she isn't a fan of writing checks to the Internal Revenue Service, but "I actually like to owe a little."

You can choose to have less in taxes deducted from each paycheck, and instead take that money and put it to work for you by investing or saving it.

Blog Archive