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Sunday
Feb272011

Tax Tip: Using Withholding Calculators

Photo Courtesy - Getty Images(NEW YORK) -- Did you get a refund last year? Most taxpayers did.

“Last year the average refund was almost $3,000 and about three in four taxpayers got refunds," said Eric Smith the IRS. “Many of those folks, if they use the withholding calculator, they could have less withheld from their paychecks, have more of their money during the year."

Jodie Reynolds with the IRS has this advice: ”Every year we actually encourage taxpayers who work and have an employer and are going to receive W2 wages to go in and use the IRS withholding calculator to determine how much they should have withheld from their taxes."

Many websites offer tax calculators. Kathy Pickering with H&R Block says they can be helpful for those with several employers: “If they change jobs or if they're working multiple jobs where they've got a couple different paychecks it can be a little bit more complicated to predict it there."

Copyright 2011 ABC News Radio







ABC News Radio