Dan Pilla of taxhelponline.com, Do you look forward to your tax refund every year? This year, millions will receive a refund averaging about $2,200. Many people use their refund as a way of saving money, but let me tell you, this is the world’s worst way to save money. If you get a refund of $2,200, that means you paid $183 a month in taxes you don’t owe. Even worse, you let the government hold your money for over a year without paying you a dime of interest. You would never let your bank get away with that, why let the IRS? To stop over-withholding simply adjust form W-4, Withholding Allowance Certificate. That’s the form you gave your employer when you started working. By claiming additional allowances, you stop over-withholding. Then, if you really want to save money, put $183 a month into a 401(k) or IRA. After one year, you’ll not only have $2,200 in your account, but you’ll get a $2,200 tax deduction besides. That will cut your taxes even more!
