A raise sounds good, right? If you got a large tax refund and anticipate 2012 will be similar to your 2011 tax situation, you can give yourself a raise by adjusting your withholding to meet your tax liability. This puts your overpayment of taxes in your paycheck every payday rather than waiting for a tax refund check next April when you file your tax return. No need to let the government use your money all year.
Kiplinger provides you with the simple steps in their recent article, How to Adjust Your Tax Withholding – Kiplinger.
Every person’s tax situation is different and can vary from year to year. If you need help, seek tax planning advice from a professional to ensure you are meeting your tax liability without overpaying.
Enjoy your raise! You deserve it!