Monday, February 7, 2011

Refund too high?

Big refund this year? You're not alone. Taxpayers received an average refund of $3,003 last year - up 5% from the average refund of $2,859 taxpayers received in 2009.

The jump was the biggest in years thanks to several tax benefits as part of the American Recovery and Reinvestment Act.
Take steps now to receive some of that money throughout the year. Submit a new Form W-4 to your employer or a Form W-4P to your pension administrator. If you're eligible for Earned Income Credit, submitting a Form W-5 to your employer will allow to receive the credit throughout the year.

You can use IRS Pub. 919 and IRS Withholding Calculator for additional assistance in calculating your tax withholding.

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