Should I increase my withholding to get a bigger refund?
Only if you think you cannot control your spending. By allowing the IRS to collect more from each paycheck, you are making an interest free loan to Uncle Sam. Ideally, you should only pay what you owe in withholding during the year and possible write a small check to the IRS in April. That allows you to bank the extra money and earn some interest on it. Even a small amount is more that you get from the IRS.
You can adjust your withholding on form W-4 that your employer provides to you. As always, please call (949) 683-8111 or email us at info@southcountycpa.com if you have any questions. We are here to help.
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