Clark Howard has our backs again with his article, 3Ways to Protect Yourself After the IRS Tax Records Breach. Risk for Identify Theft is growing rapidly and you can take steps to protect yourself.
- Do a credit freeze
- Beware of reload scams
- Reduce your withholding at work
Reducing your withholding at work is recommended if you are receiving a tax refund each year. Essentially you are giving the government an interest free loan. THEY get to use your money all year long! Reduce your withholding to the point you estimate you will break even when you file your taxes. Estimating tax liabilities and adjusting withholding accordingly is tax planning at its finest. I highly recommend all tax payers do proper tax planning every year.