Withholding – Too Much, Too Little?

Are you having too little withheld from you paycheck for taxes?  Many people use their company federal and state payroll tax withholdings to fund their savings plans by withholding too much. Are you one of them?By over-withholding, the government is getting an interest-free loan from many Americans who would otherwise be better off getting their money in their paychecks.  Under withholding means they are setting themselves up to owe the government money next winter.As a result of over-withholding, those same people find themselves not getting all their money when they deserve it – on pay day.Are you one of those who may be over-withholding your payroll taxes? What could you use that extra money for? Is your budget already pretty tight? Could you use a few more dollars to pay towards some outstanding debt or how about using some to celebrate a recent debt pay-off. You know, it is your money! Find out your correct withholding number. It is a easy as using the IRS calculator.Instead of loaning the government your money at no interest, you could also use the extra money to setup an auto-transfer from your payroll deposit directly into your savings account and EARN interest instead of giving it away.You know it is not too late. As we get close to entering the last quarter of this year you have time to review your withholdings, make some changes and possibly, quite possibly, put some more money in your take home pay.How do you review your correct withholdings? The IRS has setup an online tool that will help guide you into determining your correct withholding number. From that tool, update your W4 and turn it in to your payroll department for your withholdings to be properly updated.Click here to visit the IRS W4 Estimating tool today.